BILL NUMBER: SB 966	CHAPTERED  07/12/99

	CHAPTER   83
	FILED WITH SECRETARY OF STATE   JULY 12, 1999
	APPROVED BY GOVERNOR   JULY 12, 1999
	PASSED THE ASSEMBLY   JUNE 21, 1999
	PASSED THE SENATE   MAY 24, 1999

INTRODUCED BY   Committee on Judiciary (Senators Schiff (Chair),
Burton, Escutia, Haynes, Morrow, O'Connell, Peace, Sher, and Wright)

                        FEBRUARY 26, 1999

   An act to amend Sections 2530.2, 2725.1, 4052, 4827, 10145, 10177,
10229, 10232, 11018.12, 17539.15, 17550.14, 17550.16, 17550.23,
17550.41, 19950.2, 21701.1, and 23104.2 of, and to amend and renumber
Section 730 of, the Business and Professions Code, to amend Sections
1102.6c, 1739.7, 1793.22, 1815, and 3269 of the Civil Code, to amend
Sections 631 and 1167.3 of the Code of Civil Procedure, to amend
Sections 25102 and 28956 of the Corporations Code, to amend Sections
8927, 42238.95, 44259.3, 44403, 44579.4, 44731, 51201.5, 51554,
51555, 51871, 52122, 54745, 54748, 54761.3, 60603, 60640, 69621, and
89010 of the Education Code, to amend Sections 10262, 15112, and
15151 of the Elections Code, to amend Sections 4252, 4351, 4901,
6380, 7572, and 7575 of the Family Code, to amend Sections 6420 and
7151 of the Fish and Game Code, to amend Sections 221, 5852, 14651,
20797, and 31753 of the Food and Agricultural Code, to amend Sections
3517.65, 4560, 6253, 6505.5, 7073, 7260, 7262.5, 9359.01, 12652,
13965.2, 14838.5, 18523.3, 19141.3, 19175.6, 19576.5, 19582.3,
20068.2, 20677, 21028, 22200, 22209, 22754.5, and 54975 of, to amend
the heading of Article 5 (commencing with Section 63043) of Chapter 2
of Division 1 of Title 6.7 of, to amend and renumber Sections 66400,
66401, 66402, and 66403 of, and to amend and renumber the heading of
Chapter 6 (commencing with Section 66400) of Division 1 of Title 7
of, and to repeal Section 54953 of, the Government Code, to amend
Sections 1206, 1261.5, 1261.6, 1300, 1351.2, 1357.09, 1357.50,
1357.51, 1367.24, 1442.5, 1502.6, 1522, 1746, 1771.9, 1797.191,
18020, 18025.5, 25989.1, 33392, 33492.22, 44015, 111940, 120440,
124980, and 129820 of, to amend and renumber Section 50518 of, and to
repeal Section 33298 of, the Health and Safety Code, to amend
Sections 1063.6, 1765.1, 10095, 10116.5, 10194.8, 10232.8, 10273.4,
10700, and 10841 of, and to amend and renumber Sections 12963.96 and
12963.97 of, the Insurance Code, to amend Sections 138.4, 201.5,
1771.5, 3716.2, 4707, and 5433 of the Labor Code, to amend Sections
136.2, 148.10, 290, 298, 299, 299.6, 350, 550, 594, 626.9, 653m, 790,
831.5, 1203.097, 1269b, 1347, 3003, 4536.5, 5066, 6051, 6065, 6126,
12071, 12085, 12086, 12370, 13515.55, and 13602 of the Penal Code, to
amend Section 10218, 14575, and 33001 of the Public Resources Code,
to amend Sections 64, 401.15, 995.2, 3772.5, 17275.6, 19057, 19141.6,
19271, 23038.5, 23610.5, 23701t, 23704, 24416.2, 41136, and 65004 of
the Revenue and Taxation Code, to amend Section 1095 of the
Unemployment Insurance Code, to amend Sections 2478, 2810, 4466,
11614, and 40000.15 of the Vehicle Code, to amend Section 1062 of the
Water Code, to amend Sections 319, 366.26, 781, 1801, 5768.5,
6609.1, 10980, 11369, 11401, 12302.3, 16118, and 16501.1 of, to amend
and renumber Sections 1790, 1791, 1792, 1793, and 11008.19 of, and
to amend and repeal Section 17012.5 of, the Welfare and Institutions
Code, and to amend Section 8.2 of Chapter 545 of the Statutes of
1943, Section 2 of Chapter 21 of the Statutes of 1998, Section 111 of
Chapter 310 of the Statutes of 1998, Section 3 of Chapter 652 of the
Statutes of 1998, Section 1 of Chapter 722 of the Statutes of 1998,
Section 11 of Chapter 760 of the Statutes of 1998, Section 12 of
Chapter 760 of the Statutes of 1998, and Section 10 of Chapter 969 of
the Statutes of 1998, relating to maintenance of the codes.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 966, Committee on Judiciary.    Maintenance of the codes.
   Existing law directs the Legislative Counsel to advise the
Legislature from time to time as to legislation necessary to maintain
the codes.
   This bill would restate existing provisions of law to effectuate
the recommendations made by the Legislative Counsel to the
Legislature for consideration during 1999, and would not make any
substantive change in the law.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 730 of the Business and Professions Code, as
added by Chapter 400 of the Statutes of 1997, is amended and
renumbered to read:
   730.5.  (a) It is unprofessional conduct and a crime, as provided
in Section 4935, for a physician and surgeon, osteopathic physician,
dentist, or podiatrist to direct or supervise the performance of
acupuncture involving the application of a needle to the body of a
human being by a person licensed under this division who is not
licensed pursuant to the Acupuncture Licensure Act established by
Chapter 12 (commencing with Section 4925).
   (b) It is unprofessional conduct and a crime, as provided in
Section 4935, for a person licensed under this division who is not
licensed pursuant to the Acupuncture Licensure Act established by
Chapter 12 (commencing with Section 4925) to perform acupuncture
involving the application of a needle to the body of a human being at
the direction or under the supervision of a physician and surgeon,
osteopathic physician, dentist, or podiatrist.
  SEC. 2.  Section 2530.2 of the Business and Professions Code is
amended to read:
   2530.2.  As used in this chapter, unless the context otherwise
requires:
   (a) "Board" means the Speech-Language Pathology and Audiology
Board or any successor.
   (b) "Person" means any individual, partnership, corporation,
limited liability company, or other organization or combination
thereof, except that only individuals can be licensed under this
chapter.
   (c) A "speech-language pathologist" is a person who practices
speech-language pathology.
   (d) "The practice of speech-language pathology" means the
application of principles, methods, and procedures for measurement,
testing, identification, prediction, counseling, or instruction
related to the development and disorders of speech, voice, or
language for the purpose of identifying, preventing, managing,
habilitating or rehabilitating, ameliorating, or modifying those
disorders and conditions in individuals or groups of individuals;
conducting hearing screenings; and the planning, directing,
conducting and supervision of programs for identification,
evaluation, habilitation, and rehabilitation of disorders of speech,
voice, or language.
   (e) "Speech-language pathology aide" means any person meeting the
minimum requirements established by the board, who works directly
under the supervision of a speech-language pathologist.
   (f) (1) "Speech-language pathology assistant" means a person who
meets the academic and supervised training requirements set forth by
the board and who is approved by the board to assist in the provision
of speech-language pathology under the direction and supervision of
a speech-language pathologist who shall be responsible for the
extent, kind, and quality of the services provided by the
speech-language pathology assistant.
   (2) The supervising speech-language pathologist employed or
contracted for by a public school may hold either a valid and current
license issued by the board or a valid, current, and professional
clear clinical or rehabilitative services credential in language,
speech, and hearing issued by the Commission on Teacher
Credentialing.  For purposes of this paragraph, a "clear" credential
is a credential that is not issued pursuant to a waiver or emergency
permit and is as otherwise defined by the Commission on Teacher
Credentialing.
   (g) An "audiologist" is one who practices audiology.
   (h) "The practice of audiology" means the application of
principles, methods, and procedures of measurement, testing,
appraisal, prediction, consultation, counseling, instruction related
to auditory, vestibular, and related functions, and the modification
of communicative disorders involving speech, language, auditory
behavior or other aberrant behavior resulting from auditory
dysfunction, and the planning, directing, conducting, supervising, or
participating in programs of identification of auditory disorders,
hearing conservation, cerumen removal, aural habilitation, and
rehabilitation, including hearing aid recommendation and evaluation
procedures including, but not limited to, specifying amplification
requirements and evaluation of the results thereof, auditory
training, and speech reading.
   (i) "Audiology aide" means any person, meeting the minimum
requirements established by the board, who works directly under the
supervision of an audiologist.
   (j) "Medical board" means the Medical Board of California or a
division of the board.
   (k) A "hearing screening" performed by a speech-language
pathologist means a binary puretone screening at a preset intensity
level for the purpose of determining if the screened individuals are
in need of further medical or audiological evaluation.
   (l) "Cerumen removal" means the nonroutine removal of cerumen
within the cartilaginous ear canal necessary for access in
performance of audiological procedures that shall occur under
physician and surgeon supervision.  Cerumen removal, as provided by
this section, shall only be performed by a licensed audiologist.
"Physician and surgeon supervision" shall not be construed to require
the physical presence of the physician, but shall include all of the
following:
   (1) The supervising physician shall collaborate on the development
of written standardized protocols.  The protocols shall include a
requirement that the supervised audiologist immediately refer to an
appropriate physician any trauma, including skin tears, bleeding, or
other pathology of the ear discovered in the process of cerumen
removal as defined in this subdivision.
   (2) The supervising physician shall approve the written
standardized protocol.
   (3) The supervising physician shall be within the general
vicinity, as provided by the physician-audiologist protocol, of the
supervised audiologist and available by telephone contact at the time
of cerumen removal.
   (4) A licensed physician and surgeon may not at any one time
supervise more than two audiologists for purposes of cerumen removal.

  SEC. 3.  Section 2725.1 of the Business and Professions Code is
amended to read:
   2725.1.  Notwithstanding any other provision of law,  a registered
nurse may dispense drugs or devices upon an order by a licensed
physician and surgeon when the nurse is functioning within a licensed
clinic as defined in paragraphs (1) and (2) of subdivision (a) of
Section 1204 of, or within a clinic as defined in subdivision (b) or
(c) of Section 1206 of the Health and Safety Code.
    A clinic may not employ a registered nurse to perform dispensing
duties exclusively.  A registered nurse may not dispense drugs in a
pharmacy or keep a pharmacy, open shop, or drugstore for the
retailing of drugs or poisons.  A registered nurse may not compound
drugs.  Dispensing of drugs by a registered nurse shall not include
substances included in the California Uniform Controlled Substances
Act (Division 10 (commencing with Section 11000) of the Health and
Safety Code).  This section does not exempt a clinic from Article 13
(commencing with Section 4180) of Chapter 9.
  SEC. 4.  Section 4052 of the Business and Professions Code is
amended to read:
   4052.  (a) Notwithstanding any other provision of law, a
pharmacist may:
   (1) Furnish a reasonable quantity of compounded medication to a
prescriber for office use by the prescriber.
   (2) Transmit a valid prescription to another pharmacist.
   (3) Administer, orally or topically, drugs and biologicals
pursuant to a prescriber's order.
   (4) Perform the following procedures or functions in a licensed
health care facility in accordance with policies, procedures, or
protocols developed by health professionals, including physicians,
pharmacists, and registered nurses, with the concurrence of the
facility administrator:
   (A) Ordering or performing routine drug therapy-related patient
assessment procedures including temperature, pulse, and respiration.

   (B) Ordering drug therapy-related laboratory tests.
   (C) Administering drugs and biologicals by injection pursuant to a
prescriber's order (the administration of immunizations under the
supervision of a prescriber may also be performed outside of a
licensed health care facility).
   (D) Initiating or adjusting the drug regimen of a patient pursuant
to an order or authorization made by the patient's prescriber and in
accordance with the policies, procedures, or protocols of the
licensed health care facility.
   (5) (A) Perform the following procedures or functions as part of
the care provided by a health care facility, a licensed home health
agency, a licensed clinic in which there is physician oversight, or a
provider who contracts with a licensed health care service plan with
regard to the care or services provided to the enrollees of that
health care service plan, in accordance with policies, procedures, or
protocols of that facility, home health agency, in accordance with
subparagraph (D), licensed clinic, or health care service plan
developed by health professionals, including physicians, pharmacists,
and registered nurses,  which shall require, at a minimum, that the
medical records of the patient be available to both the patient's
prescriber and the pharmacist, and that the procedures to be
performed by the pharmacist relate to a condition for which the
patient has first seen a physician:
   (i) Ordering or performing routine drug therapy-related patient
assessment procedures including temperature, pulse, and respiration.

   (ii) Ordering drug therapy-related laboratory tests.
   (iii) Administering drugs and biologicals by injection pursuant to
a prescriber's order (the administration of immunizations under the
supervision of a prescriber may also be performed outside of a
licensed health care facility).
   (iv) Adjusting the drug regimen of a patient pursuant to a
specific written order or authorization made by the patient's
prescriber for the individual patient, and in accordance with the
policies, procedures, or protocols of the health care facility, home
health agency, licensed clinic, or health care service plan.
Adjusting the drug regimen does not include substituting or selecting
a different drug, except as authorized by Section 4073.
   (B) A patient's prescriber may prohibit, by written instruction,
any adjustment or change in the patient's drug regimen by the
pharmacist.
   (C) The policies, procedures, or protocols referred to in this
paragraph shall require that the pharmacist function as part of a
multidisciplinary group that includes physicians and direct care
registered nurses.  The multidisciplinary group shall determine the
appropriate participation of the pharmacist and the direct care
registered nurse.
   (D) A pharmacist performing any procedure authorized under this
paragraph for a licensed home health agency shall perform the
procedures in accordance with a written, patient-specific protocol
approved by the treating or supervising physician.  Any change,
adjustment, or modification of an approved preexisting treatment or
drug therapy shall be provided in writing to the treating or
supervising physician within 24 hours.
   (6) Manufacture, measure, fit to the patient, or sell and repair
dangerous devices or furnish instructions to the patient or the
patient's representative concerning the use of those devices.
   (7) Provide consultation to patients and professional information,
including clinical or pharmacological information, advice, or
consultation, to other health care professionals.
   (b) Prior to performing any procedure authorized by paragraph (4)
of subdivision (a), a pharmacist shall have received appropriate
training as prescribed in the policies and procedures of the licensed
health care facility.  Prior to performing any procedure authorized
by paragraph (5) of subdivision (a), a pharmacist shall have either
(1) successfully completed clinical residency training or (2)
demonstrated clinical experience in direct patient care delivery.
   (c) Nothing in this section affects the requirements of existing
law relating to maintaining the confidentiality of medical records.
   (d) Nothing in this section affects the requirements of existing
law relating to the licensing of a health care facility.
  SEC. 5.  Section 4827 of the Business and Professions Code is
amended to read:
   4827.  Nothing in this chapter prohibits any person from:
   (a) Practicing veterinary medicine as a bona fide owner of one's
own animals.  This exemption applies to the following:
   (1) The owner's bona fide employees.
   (2) Any person assisting the owner, provided that the practice is
performed gratuitously.
   (b) Lay testing of poultry by the whole blood agglutination test.
For purposes of this section, "poultry" means flocks of avian
species maintained for food production, including, but not limited
to, chickens, turkeys, and exotic fowl.
   (c) Making any determination as to the status of pregnancy,
sterility, or infertility upon livestock, equine, or food animals at
the time an animal is being inseminated, providing no charge is made
for this determination.
   (d) Administering sodium pentobarbital for euthanasia of sick,
injured, homeless, or unwanted domestic pets or animals without the
presence of a veterinarian when the person is an employee of an
animal control shelter and its agencies or humane society and has
received proper training in the administration of sodium
pentobarbital for these purposes.
  SEC. 6.  Section 10145 of the Business and Professions Code is
amended to read:
   10145.  (a) (1) A real estate broker who accepts funds belonging
to others in connection with a transaction subject to this part shall
deposit all those funds that are not immediately placed into a
neutral escrow depository or into the hands of the broker's
principal, into a trust fund account maintained by the broker in a
bank or recognized depository in this state.  All funds deposited by
the broker in a trust fund account shall be maintained there until
disbursed by the broker in accordance with instructions from the
person entitled to the funds.
   (2) Notwithstanding the provisions of paragraph (1), a real estate
broker collecting payments or performing services for investors or
note owners in connection with loans secured by a first lien on real
property may deposit funds received in trust in an out-of-state
depository institution insured by the Federal Deposit Insurance
Corporation, if the investor or note owner is any one of the
following:
   (A) The Federal National Mortgage Association, the Government
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, or the United States
Department of Veterans Affairs.
   (B) A bank or subsidiary thereof, bank holding company or
subsidiary thereof, trust company, savings bank or savings and loan
association or subsidiary thereof, savings bank or savings
association holding company or subsidiary thereof, credit union,
industrial bank or industrial loan company, or insurance company
doing business under the authority of, and in accordance with, the
laws of this state, another state, or the United States relating to
banks, trust companies, savings banks or savings associations, credit
unions, industrial banks or industrial loan companies, or insurance
companies, as evidenced by a license, certificate, or charter issued
by the United States or a state, district, territory, or commonwealth
of the United States.
   (C) Trustees of a pension, profit-sharing, or welfare fund, if the
pension, profit-sharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000).
   (D) A corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or a wholly owned
subsidiary of that corporation.
   (E) A syndication or other combination of any of the entities
specified in subparagraph (A), (B), (C), or (D) that is organized to
purchase the promissory note.
   (F) The California Housing Finance Agency or a local housing
finance agency organized under the Health and Safety Code.
   (G) A licensed residential mortgage lender or servicer acting
under the authority of that license.
   (H) A licensed real estate broker selling all or part of the loan,
note, or contract to a lender or purchaser specified in
subparagraphs (A) to (G), inclusive.
   (3) A real estate broker who deposits funds held in trust in an
out-of-state depository institution in accordance with paragraph (2)
shall make available, in this state, the books, records, and files
pertaining to the trust accounts to the commissioner or the
commissioner's representatives or pay the reasonable expenses for
travel and lodging incurred by the commissioner or the commissioner's
representatives in order to conduct an examination at an
out-of-state location.
   (b) A real estate broker acting as a principal pursuant to Section
10131.1 shall place all funds received from others for the purchase
of real property sales contracts or promissory notes secured directly
or collaterally by liens on real property in a neutral escrow
depository unless delivery of the contract or note is made
simultaneously with the receipt of the purchase funds.
   (c) A real estate sales person who accepts trust funds from others
on behalf of the broker under whom he or she is licensed shall
immediately deliver the funds to the broker or, if so directed by the
broker, shall deliver the funds into the custody of the broker's
principal or a neutral escrow depository or shall deposit the funds
into the broker's trust fund account.
   (d) If not otherwise expressly prohibited by this part, a real
estate broker may, at the request of the owner of trust funds or of
the principals to a transaction or series of transactions from whom
the broker has received trust funds, deposit the funds into an
interest-bearing account in a bank, savings and loan association,
credit union, or industrial loan company, the accounts of which are
insured by the Federal Deposit Insurance Corporation, if all of the
following requirements are met:
   (1) The account is in the name of the broker as trustee for the
designated beneficiary or principal of a transaction or series of
transactions.
   (2) All of the funds in the account are covered by insurance
provided by an agency of the United States.
   (3) The funds in the account are kept separate, distinct, and
apart from funds belonging to the broker or to any other person for
whom the broker holds funds in trust.
   (4) The broker discloses to the person from whom the trust funds
are received, and to a beneficiary whose identity is known to the
broker at the time of establishing the account, the nature of the
account, how interest will be calculated and paid under various
circumstances, whether service charges will be paid to the depository
and by whom, and possible notice requirements or penalties for
withdrawal of funds from the account.
   (5) Interest earned on funds in the account may not inure directly
or indirectly to the benefit of the broker or a person licensed to
the broker.
   (6) In an executory sale, lease, or loan transaction in which the
broker accepts funds in trust to be applied to the purchase, lease,
or loan, the parties to the contract shall have specified in the
contract or by collateral written agreement the person to whom
interest earned on the funds is to be paid or credited.
   (e) The broker shall have no obligation to place trust funds into
an interest-bearing account unless requested to do so and unless all
of the conditions in subdivision (d) are met, nor, in any event, if
he or she advises the party making the request that the funds will
not be placed in an interest-bearing account.
   (f) Nothing in subdivision (d) shall preclude the commissioner
from prescribing, by regulation, circumstances in which, and
conditions under which, a real estate broker is authorized to deposit
funds received in trust into an interest-bearing trust fund account.

   (g) The broker shall maintain a separate record of the receipt and
disposition of all funds described in subdivisions (a) and (b),
including any interest earned on the funds.
   (h) Upon request of the commissioner, a broker shall furnish to
the commissioner an authorization for examination of financial
records of those trust fund accounts maintained in a financial
institution, in accordance with the procedures set forth in Section
7473 of the Government Code.
   (i) As used in this section, "neutral escrow" means an escrow
business conducted by a person licensed under Division 6 (commencing
with Section 17000) of the Financial Code or by a person described in
paragraph (1) or (3) of subdivision (a) of Section 17006 of that
code.
  SEC. 7.  Section 10177 of the Business and Professions Code is
amended to read:
   10177.  The commissioner may suspend or revoke the license of a
real estate licensee, or may deny the issuance of a license to an
applicant, who has done any of the following, or may suspend or
revoke the license of a corporation, or deny the issuance of a
license to a corporation, if an officer, director, or person owning
or controlling 10 percent or more of the corporation's stock has done
any of the following:
   (a) Procured, or attempted to procure, a real estate license or
license renewal, for himself or herself or any salesperson, by fraud,
misrepresentation, or deceit, or by making any material misstatement
of fact in an application for a real estate license, license
renewal, or reinstatement.
   (b) Entered a plea of guilty or nolo contendere to, or been found
guilty of, or been convicted of, a felony or a crime involving moral
turpitude, and the time for appeal has elapsed or the judgment of
conviction has been affirmed on appeal, irrespective of an order
granting probation following that conviction, suspending the
imposition of sentence, or of a subsequent order under Section 1203.4
of the Penal Code allowing that licensee to withdraw his or her plea
of guilty and to enter a plea of not guilty, or dismissing the
accusation or information.
   (c) Knowingly authorized, directed, connived at, or aided in the
publication, advertisement, distribution, or circulation of any
material false statement or representation concerning his or her
business, or any business opportunity or any land or subdivision (as
defined in Chapter 1 (commencing with Section 11000) of Part 2)
offered for sale.
   (d) Willfully disregarded or violated the Real Estate Law (Part 1
(commencing with Section 10000)) or Chapter 1 (commencing with
Section 11000) of Part 2 or the rules and regulations of the
commissioner for the administration and enforcement of the Real
Estate Law and Chapter 1 (commencing with Section 11000) of Part 2.
   (e) Willfully used the term "realtor" or any trade name or
insignia of membership in any real estate organization of which the
licensee is not a member.
   (f) Acted or conducted himself or herself in a manner that would
have warranted the denial of his or her application for a real estate
license, or has either had a license denied or had a license issued
by another agency of this state, another state, or the federal
government revoked or suspended for acts that, if done by a real
estate licensee, would be grounds for the suspension or revocation of
a California real estate license, if the action of denial,
revocation, or suspension by the other agency or entity was taken
only after giving the licensee or applicant fair notice of the
charges, an opportunity for a hearing, and other due process
protections comparable to the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340), Chapter 4 (commencing with
Section 11370), and Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code), and only upon an
express finding of a violation of law by the agency or entity.
   (g) Demonstrated negligence or incompetence in performing any act
for which he or she is required to hold a license.
   (h) As a broker licensee, failed to exercise reasonable
supervision over the activities of his or her salespersons, or, as
the officer designated by a corporate broker licensee, failed to
exercise reasonable supervision and control of the activities of the
corporation for which a real estate license is required.
   (i) Has used his or her employment by a governmental agency in a
capacity giving access to records, other than public records, in a
manner that violates the confidential nature of the records.
   (j) Engaged in any other conduct, whether of the same or a
different character than specified in this section, which constitutes
fraud or dishonest dealing.
   (k) Violated any of the terms, conditions, restrictions, and
limitations contained in any order granting a restricted license.
   (l) Solicited or induced the sale, lease, or listing for sale or
lease of residential property on the ground, wholly or in part, of
loss of value, increase in crime, or decline of the quality of the
schools due to the present or prospective entry into the neighborhood
of a person or persons of another race, color, religion, ancestry,
or national origin.
   (m) Violated the Franchise Investment Law (Division 5 (commencing
with Section 31000) of Title 4 of the Corporations Code) or
regulations of the Commissioner of Corporations pertaining thereto.
   (n) Violated the Corporate Securities Law of 1968 (Division 1
(commencing with Section 25000) of Title 4 of the Corporations Code)
or the regulations of the Commissioner of Corporations pertaining
thereto.
   (o) Failed to disclose to the buyer of real property, in a
transaction in which the licensee is an agent for the buyer, the
nature and extent of a licensee's direct or indirect ownership
interest in that real property.  The direct or indirect ownership
interest in the property by a person related to the licensee by blood
or marriage, by an entity in which the licensee has an ownership
interest, or by any other person with whom the licensee has a special
relationship shall be disclosed to the buyer.
   If a real estate broker that is a corporation has not done any of
the foregoing acts, either directly or through its employees, agents,
officers, directors, or persons owning or controlling 10 percent or
more of the corporation's stock, the commissioner may not deny the
issuance of a real estate license to, or suspend or revoke the real
estate license of, the corporation, provided that any offending
officer, director, or stockholder, who has done any of the foregoing
acts individually and not on behalf of the corporation, has been
completely disassociated from any affiliation or ownership in the
                                          corporation.
  SEC. 8.  Section 10229 of the Business and Professions Code is
amended to read:
   10229.  Any transaction that involves the sale of or offer to sell
a series of notes secured directly by an interest in the same real
property, or the sale of undivided interests in a note secured
directly by real property equivalent to a series transaction, shall
comply with all of the following, except as provided in paragraph (4)
of subdivision (i), the terms "sale" and "offer to sell," as used in
this section, shall have the same meaning as set forth in Section
25017 of the Corporations Code and include the acts of negotiating
and arranging the transaction:
   (a) A notice in the following form and containing the following
information shall be filed with the commissioner within 30 days after
the first transaction and within 30 days of any material change in
the information required in the notice:


TO:  Real Estate Commissioner
     Mortgage Loan Section
     2201 Broadway
     Sacramento, CA 95818

This notice is filed pursuant to Section 10229 of the Business and
Professions Code.

( ) Original Notice                ( ) Amended Notice

1.  Name of Broker conducting transaction under Section 10229:


___________________________________________________________________


2.  Firm name (if different from "1"):


___________________________________________________________________


3.  Street address (main location):


___________________________________________________________________
    # and Street               City           State     ZIP Code


4.  Mailing address (if different from "3"):


___________________________________________________________________


5.  Servicing Agent:  Identify the person or persons who will act as
    the servicing agent in transactions pursuant to Section 10229
    (including the undersigned Broker if that is the case):


___________________________________________________________________

___________________________________________________________________


6.  Inspection of trust account (before answering this question,
review
    the provisions of paragraph (3) of subdivision (j) of Section
    10229).

CHECK ONLY ONE OF THE FOLLOWING:

( )  The undersigned Broker is (or expects to be) required to file
     reports of inspection of its trust account(s) with the Real
     Estate Commissioner pursuant to paragraph (3) of subdivision (j)

     of Section 10229.

( )  The undersigned Broker is NOT (or does NOT expect to be)
required
     to file reports of inspection of its trust account(s) with the
     Real Estate Commissioner pursuant to paragraph (3) of
subdivision
     (j) of Section 10229.

7.   Signature.  The contents of this notice are true and correct.

     _______________
________________________________________________
          Date                       Type Name of Broker


________________________________________________
                        Signature of Broker or of Designated Officer
                                     of Corporate Broker


________________________________________________
                         Type Name of Person(s) Signing This Notice

NOTE:  AN AMENDED NOTICE MUST BE FILED BY THE BROKER WITHIN 30 DAYS
OF ANY MATERIAL CHANGE IN THE INFORMATION REQUIRED TO BE SET FORTH
HEREIN.

   (b) All advertising employed for transactions under this section
shall (1) show the name of the broker and (2) comply with Section
10235 of the Business and Professions Code and Sections 260.302 and
2848 of Title 10 of the California Code of Regulations.  Brokers and
their agents are cautioned that a reference to a prospective investor
that a transaction is conducted under this section may be deemed
misleading or deceptive if this representation may reasonably be
construed by the investor as an implication of merit or approval of
the transaction.
   (c) The real property directly securing the notes or interests is
located in this state, the note or notes are not by their terms
subject to subordination to any subsequently created deed of trust
upon the real property, and the note or notes are not promotional
notes secured by liens on separate parcels of real property in one
subdivision or in contiguous subdivisions.  For purposes of this
subdivision, a promotional note means a promissory note secured by a
trust deed, executed on unimproved real property or executed after
construction of an improvement of the property but before the first
purchase of the property as so improved, or executed as a means of
financing the first purchase of the property as so improved, that is
subordinate, or by its terms may become subordinate, to any other
trust deed on the property.  However, the term "promotional note"
does not include either of the following:
   (1) A note that was executed in excess of three years prior to
being offered for sale.
   (2) A note secured by a first trust deed on real property in a
subdivision that evidences a bona fide loan made in connection with
the financing of the usual cost of the development in a residential,
commercial, or industrial building or buildings on the property under
a written agreement providing for the disbursement of the loan funds
as costs are incurred or in relation to the progress of the work and
providing for title insurance ensuring the priority of the security
as against mechanic's and materialmen's liens or for the final
disbursement of at least 10 percent of the loan funds after the
expiration of the period for the filing of mechanic's and materialmen'
s liens.
   (d) (1) The notes or interests are sold by or through a real
estate broker, as principal or agent.  At the time the interests are
originally sold or assigned, neither the broker nor an affiliate of
the broker shall have an interest as owner, lessor, or developer of
the property securing the loan, or any contractual right to acquire,
lease, or develop the property securing the loan.  This provision
does not prohibit a broker from conducting the following transactions
if, in either case, the disclosure statement furnished by the broker
pursuant to subdivision (k) discloses the interest of the broker or
affiliate in the transaction and the circumstances under which the
broker or affiliate acquired the interest:
   (A) A transaction in which the broker or an affiliate of the
broker is acquiring the property pursuant to a foreclosure under, or
sale pursuant to, a deed of trust securing a note for which the
broker is the servicing agent or that the broker sold to the holder
or holders.
   (B) A transaction in which the broker or an affiliate of the
broker is reselling from inventory property acquired by the broker
pursuant to a foreclosure under, or sale pursuant to, a deed of trust
securing a note for which the broker is the servicing agent or that
the broker sold to the holder or holders.
   (2) For the purposes of this subdivision, the following
definitions apply:
   (A) "Broker" means a person licensed as a broker under this part.

   (B) "Affiliate" means a person controlled by, controlling, or
under common control with, the broker.
   (e) (1) The notes or interests shall not be sold to more than 10
persons, each of whom meets one or both of the qualifications of
income or net worth set forth below and signs a statement, which
shall be retained by the broker for four years, conforming to the
following:


Transaction Identifier: _______________________________________

Name of Purchaser: ________________________  Date: ____________

Check either one of the following, if true:
( ) My investment in the transaction does not exceed 10% of my
    net worth, exclusive of home, furnishings, and automobiles.

( ) My investment in the transaction does not exceed 10% of my
    adjusted gross income for federal income tax purposes for
    my last tax year or, in the alternative, as estimated for
    the current year.

                        _______________________________________
                                       Signature

   (2) The number of offerees shall not be considered for the
purposes of this section.
   (3) A husband and wife and their dependents, and an individual and
his or her dependents, shall be counted as one person.
   (4) A retirement plan, trust, business trust, corporation, or
other entity that is wholly owned by an individual and the individual'
s spouse or the individual's dependents, or any combination thereof,
shall not be counted separately from the individual, but the
investments of these entities shall be aggregated with those of the
individual for the purposes of the statement required by paragraph
(1).  If the investments of any entities are required to be
aggregated under this subdivision, the adjusted gross income or net
worth of these entities may also be aggregated with the net worth,
income, or both, of the individual.
   (5) The "institutional investors" enumerated in subdivision (i) of
Section 25102 or subdivision (c) of Section 25104 of the
Corporations Code, or in a rule adopted pursuant thereto, shall not
be counted.
   (f) The notes or interests of the purchasers shall be identical in
their underlying terms, including the right to direct or require
foreclosure, rights to and rate of interest, and other incidents of
being a lender, and the sale to each purchaser pursuant to this
section shall be upon the same terms, subject to adjustment for the
face or principal amount or percentage interest purchased and for
interest earned or accrued.  This subdivision does not preclude
different selling prices for interests to the extent that these
differences are reasonably related to changes in the market value of
the loan occurring between the sales of these interests.  The
interest of each purchaser shall be recorded.
   (g) (1) Except as provided in paragraph (2), the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the real property
senior thereto, shall not exceed the following percentages of the
current market value of the real property, as determined in writing
by the broker or appraiser pursuant to Section 10232.6, plus the
amount for which the payment of principal and interest in excess of
the percentage of current market value is insured for the benefit of
the holders of the notes or interests by an insurer admitted to do
business in this state by the Insurance Commissioner:


(A)  Single-family residence, owner occupied ..................
80%
(B)  Single-family residence, not owner occupied ..............
75%
(C)  Commercial and income-producing properties ...............
65%
(D)  Single family residentially zoned lot or parcel which
     has installed offsite improvements including
     drainage, curbs, gutters, sidewalks, paved roads, and
     utilities as mandated by the political subdivision
     having jurisdiction over the lot or parcel ...............
65%
(E)  Land that has been zoned for (and if required,
     approved for subdivision as) commercial or
     residential development ..................................
50%
(F)  Other real property ......................................
35%

   (2) The percentage amounts specified in paragraph  (1) may be
exceeded when and to the extent that the broker determines that the
encumbrance of the property in excess of these percentages is
reasonable and prudent considering all relevant factors pertaining to
the real property.  However, in no event shall the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the property senior
thereto, exceed 80 percent of the current fair market value of
improved real property or 50 percent of the current fair market value
of unimproved real property, except in the case of a single-family
zoned lot or parcel as defined in paragraph (1), which shall not
exceed 65 percent of the current fair market value of that lot or
parcel, plus the amount insured as specified in paragraph (1).  A
written statement shall be prepared by the broker that sets forth the
material considerations and facts that the broker relies upon for
his or her determination, which shall be retained as a part of the
broker's record of the transaction.  Either a copy of the statement
or the information contained therein shall be included in the
disclosures required pursuant to subdivision (k).
   (3) A copy of the appraisal or the broker's evaluation shall be
delivered to each purchaser.  The broker shall advise purchasers of
their right to receive a copy.  For purposes of this paragraph,
"appraisal" means a written estimate of value based upon the
assembling, analyzing, and reconciling of facts and value indicators
for the real property in question.  A broker shall not purport to
make an appraisal unless the person so employed is qualified on the
basis of special training, preparation, or experience.
   (h) The documentation of the transaction shall require that (1) a
default upon any interest or note is a default upon all interests or
notes and (2) the holders of more than 50 percent of the record
beneficial interests of the notes or interests may govern the actions
to be taken on behalf of all holders in accordance with Section
2941.9 of the Civil Code in the event of default or foreclosure for
matters that require direction or approval of the holders, including
designation of the broker, servicing agent, or other person acting on
their behalf, and the sale, encumbrance, or lease of real property
owned by the holders resulting from foreclosure or receipt of a deed
in lieu of foreclosure.  The terms called for by this subdivision may
be included in the deed of trust, in the assignment of interests, or
in any other documentation as is necessary or appropriate to make
them binding on the parties.
   (i) (1) The broker shall not accept any purchase or loan funds or
other consideration from a prospective lender or purchaser, or
directly or indirectly cause the funds or other consideration to be
deposited in an escrow or trust account, except as to a specific loan
or note secured by a deed of trust that the broker owns, is
authorized to negotiate, or is unconditionally obligated to buy.
   (2) All funds received by the broker from the purchasers or
lenders shall be handled in accordance with Section 10145 for
disbursement to the persons thereto entitled upon recordation of the
interests of the purchasers or lenders in the note and deed of trust.
  No provision of this section shall be construed as modifying or
superseding applicable law regulating the escrow holder in any
transaction or the handling of the escrow account.
   (3) The books and records of the broker or servicing agent, or
both, shall be maintained in a manner that readily identifies
transactions under this section and the receipt and disbursement of
funds in connection with these transactions.
   (4) If required by paragraph (3) of subdivision (j), the review by
the independent certified public accountant shall include a sample
of transactions, as reflected in the records of the trust account
required pursuant to paragraph (1) of subdivision (j), and the bank
statements and supporting documents.  These documents shall be
reviewed for compliance with this section with respect to the
handling and distribution of funds.  The sample shall be selected at
random by the accountant from all these transactions and shall
consist of the following:  (A) three sales made or 5 percent of the
sales made pursuant to this section during the period for which the
examination is conducted, whichever is greater, and (B) 10 payments
processed or 2 percent of payments processed under this exemption
during the period for which the examination is conducted, whichever
is greater.  The transaction that constitutes a "sale," for purposes
of this subdivision, is the series of transactions by which a series
of notes of a maker, or the interests in the note of a maker, are
sold or issued to their various purchasers under this section,
including all receipts and disbursements in that process of funds
received from the purchasers or lenders.  The transaction that
constitutes a "payment," for the purposes of this subdivision, is the
receipt of a payment from the person obligated on the note or from
some other person on behalf of the person so obligated, including the
broker or servicing agent, and the distribution of that payment to
the persons entitled thereto.  If a payment involves an advance paid
by the broker or servicing agent as the result of a dishonored check,
the inspection shall identify the source of funds from which the
payment was made or, in the alternative, the steps that are
reasonably necessary to determine that there was not a disbursement
of trust funds.  The accountant shall inspect for compliance with the
following specific provisions of this section:  paragraphs (1), (2),
and (3) of subdivision (i) and paragraphs (1) and (2) of subdivision
(j).
   (5) Within 30 days of the close of the period for which the report
is made, or within any additional time as the commissioner may in
writing allow in a particular case, the accountant shall forward to
the broker or servicing agent, as the case may be, and to the
commissioner, the report of the accountant, stating that the
inspection was performed in accordance with this section, listing the
sales and the payments examined, specifying the nature of the
deficiencies, if any, noted by the accountant with respect to each
sale or payment, together with any further information as the
accountant may wish to include, such as corrective steps taken with
respect to any deficiency so noted, or stating that no deficiencies
were observed.  If the broker meets the threshold criteria of Section
10232, the report of the accountant shall be submitted as part of
the quarterly reports required under Section 10232.25.
   (j) The notes or interests shall be sold subject to a written
agreement that obligates a licensed real estate broker, or a person
exempted from the licensing requirement for real estate brokers under
Chapter 3 (commencing with Section 10130) of Part 1 of Division 4,
to act as agent for the purchasers or lenders to service the note or
notes and deed of trust, including the receipt and transmission of
payments and the institution of foreclosure proceedings in the event
of a default.  A copy of this servicing agreement shall be delivered
to each purchaser.  The broker shall offer to the lenders or
purchasers the services of the broker or one or more affiliates of
the broker, or both, as servicing agent for each transaction
conducted pursuant to this section.  The agreement shall require all
of the following:
   (1) (A) That payments received on the note or notes be deposited
immediately to a trust account maintained in accordance with this
section and with the provisions for trust accounts of licensed real
estate brokers contained in Section 10145 and Article 15 (commencing
with Section  2830.1) of Chapter 6 of Title 10 of the California Code
of Regulations.
   (B) That payments deposited pursuant to subparagraph (A) shall not
be commingled with the assets of the servicing agent or used for any
transaction other than the transaction for which the funds are
received.
   (2) That payments received on the note or notes shall be
transmitted to the purchasers or lenders pro rata according to their
respective interests within 25 days after receipt thereof by the
agent.  If the source for the payment is not the maker of the note,
the agent shall inform the purchasers or lenders of the source for
payment.  A broker or servicing agent who transmits to the purchaser
or lenders the broker's or servicing agent's own funds to cover
payments due from the borrower but unpaid as a result of a dishonored
check may recover the amount of the advances from the trust fund
when the past due payment is received.  However, this section does
not authorize the broker, servicing agent, or any other person to
issue, or to engage in any practice constituting, any guarantee or to
engage in the practice of advancing payments on behalf of the
borrower.
   (3) If the broker, directly or through an affiliate, is the
servicing agent for notes or interests sold pursuant to this section
upon which the payments due during any period of three consecutive
months in the aggregate exceed one hundred twenty-five thousand
dollars ($125,000) or the number of persons entitled to the payments
exceeds 120, the trust account or accounts of that broker or
affiliate shall be inspected by an independent certified public
accountant at no less than three-month intervals during the time the
volume is maintained.  Within 30 days after the close of the period
for which the review is made, the report of the accountant shall be
forwarded as provided in paragraph (5) of subdivision (i).  If the
broker is required to file an annual report pursuant to subdivision
(n) or Section 10232.2, the quarterly report pursuant to this
subdivision need not be filed for the last quarter of the year for
which the annual report is made.  For the purposes of this
subdivision, an affiliate of a broker is any person controlled by,
controlling, or under common control with the broker.
   (4) Unless the servicing agent will receive notice pursuant to
Section 2924b of the Civil Code, the servicing agent shall file a
request for notice of default upon any prior encumbrances and
promptly notify the purchasers or lenders of any default on the prior
encumbrances or on the note or notes subject to the servicing
agreement.
   (5) The servicing agent shall promptly forward copies of the
following to each purchaser or lender:
   (A) Any notice of trustee sale filed on behalf of the purchasers
or lenders.
   (B) Any request for reconveyance of the deed of trust received on
behalf of the purchasers or lenders.
   (k) The broker shall disclose in writing to each purchaser or
lender the material facts concerning the transaction on a disclosure
form adopted or approved by the commissioner pursuant to Section
10232.5, subject to the following:
   (1) The disclosure form shall include a description of the terms
upon which the note and deed of trust are being sold, including the
terms of the undivided interests being offered therein, including the
following:
   (A) In the case of the sale of an existing note:
   (i) The aggregate sale price of the note.
   (ii) The percent of the premium over or discount from the
principal balance plus accrued but unpaid interest.
   (iii) The effective rate of return to the purchasers if the note
is paid according to its terms.
   (iv) The name and address of the escrow holder for the
transaction.
   (v) A description of, and the estimated amount of, each cost
payable by the seller in connection with the sale and a description
of, and the estimated amount of, each cost payable by the purchasers
in connection with the sale.
   (B) In the case of the origination of a note:
   (i) The name and address of the escrow holder for the transaction.

   (ii) The anticipated closing date.
   (iii) A description of, and the estimated amount of, each cost
payable by the borrower in connection with the loan and a description
of, and the estimated amount of, each cost payable by the lenders in
connection with the loan.
   (2) A copy of the written statement or information contained
therein, as required by paragraph (2) of subdivision (g), shall be
included in the disclosure form.
   (3) Any interest of the broker or affiliate in the transaction, as
described in subdivision (d), shall be included with the disclosure
form.
   (4) When the particular circumstances of a transaction make
information not specified in the disclosure form material or
essential to keep the information provided in the form from being
misleading, and the other information is known to the broker, the
other information shall also be provided by the broker.
   (l) The broker or servicing agent shall furnish any purchaser of a
note or interest, upon request, with the names and addresses of the
purchasers of the other notes or interests in the loan.
   (m) No agreement in connection with a transaction covered by this
section shall grant to the real estate broker, the servicing agent,
or any affiliate of the broker or agent the option or election to
acquire the interests of the purchasers or lenders or to acquire the
real property securing the interests.  This subdivision shall not
prohibit the broker or affiliate from acquiring the interests, with
the consent of the purchasers or lenders whose interests are being
purchased, or the property, with the consent of the purchasers or
lenders, if the consent is given at the time of the acquisition.
   (n) Each broker who conducts transactions under this section and
meets the criteria of paragraph (3) of subdivision (j) shall file
with the commissioner an annual report of a review of its trust
account.  The report shall be prepared and filed in accordance with
subdivision (a) of Section 10232.2 and the rules and procedures
thereunder of the commissioner.  That report shall cover the broker's
transactions under this section and, if the broker also meets the
threshold criteria set forth in Section 10232, the broker's
transactions subject to that section shall be included as well.
   (o) Each broker conducting transactions pursuant to this section
who meets the criteria of paragraph (3) of subdivision (j) shall file
with the commissioner a report of the transactions that is prepared
in accordance with subdivision (c) of Section 10232.2.  If the broker
also meets the threshold criteria of Section 10232, the report shall
include the transactions subject to that section as well.  This
report shall be confidential pursuant to subdivision (f) of Section
10232.2.
   (p) The jurisdiction of the Commissioner of Corporations under the
Corporate Securities Law of 1968 shall be neither limited nor
expanded by this section.  Nothing in this section shall be construed
to supersede or restrict the application of the Corporate Securities
Law of 1968.  A transaction under this section shall not be
construed to be a transaction involving the issuance of securities
subject to authorization by the Real Estate Commissioner under
subdivision (e) of Section 25100 of the Corporations Code.
   (q) Nothing in this section shall be construed to change the
agency relationships between the parties where they exist or limit in
any manner the fiduciary duty of brokers to borrowers, lenders, and
purchasers of notes or interests in transactions subject to this
section.
                                                       SEC. 9.
Section 10232 of the Business and Professions Code is amended to
read:
   10232.  (a) Except as otherwise expressly provided, Sections
10232.2, 10232.25, 10233, and 10236.6 are applicable to every real
estate broker who intends or reasonably expects in a successive 12
months to do any of the following:
   (1) Negotiate a combination of 10 or more of the following
transactions pursuant to subdivision (d) or (e) of Section 10131 or
Section 10131.1 in an aggregate amount of more than one million
dollars ($1,000,000):
   (A) Loans secured directly or collaterally by liens on real
property or on business opportunities as agent for another or others.

   (B) Sales or exchanges of real property sales contracts or
promissory notes secured directly or collaterally by liens on real
property or on business opportunities as agent for another or others.

   (C) Sales or exchanges of real property sales contracts or
promissory notes secured directly or collaterally by liens on real
property as the owner of those notes or contracts.
   (2) Make collections of payments in an aggregate amount of two
hundred fifty thousand dollars ($250,000) or more on behalf of owners
of promissory notes secured directly or collaterally by liens on
real property, owners of real property sales contracts, or both.
   (3) Make collections of payments in an aggregate amount of two
hundred fifty thousand dollars ($250,000) or more on behalf of
obligors of promissory notes secured directly or collaterally by
liens on real property, lenders of real property sales contracts, or
both.
   Persons under common management, direction, or control in
conducting the activities enumerated above shall be considered as one
person for the purpose of applying the above criteria.
   (b) The negotiation of a combination of two or more new loans and
sales or exchanges of existing promissory notes and real property
sales contracts of an aggregate amount of more than two hundred fifty
thousand dollars ($250,000) in any three successive months or a
combination of five or more new loans and sales or exchanges of
existing promissory notes and real property sales contracts of an
aggregate amount of more than five hundred thousand dollars
($500,000) in any successive six months shall create a rebuttable
presumption that the broker intends to negotiate new loans and sales
and exchanges of an aggregate amount that will meet the criteria of
subdivision (a).
   (c) In determining the applicability of Sections 10232.2,
10232.25, 10233, and 10236.6, loans or sales negotiated by a broker,
or for which a broker collects payments or provides other servicing
for the owner of the note or contract, shall not be counted in
determining whether the broker meets the criteria of subdivisions (a)
and (b) if any of the following apply:
   (1) The lender or purchaser is any of the following:
   (A) The Federal National Mortgage Association, the Government
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, and the United
States Department of Veterans Affairs.
   (B) A bank or subsidiary thereof, bank holding company or
subsidiary thereof, trust company, savings bank or savings and loan
association or subsidiary thereof, savings bank or savings
association holding company or subsidiary thereof, credit union,
industrial bank or industrial loan company, commercial finance
lender, personal property broker, consumer finance lender, or insurer
doing business under the authority of, and in accordance with, the
laws of this state, any other state, or the United States relating to
banks, trust companies, savings banks or savings associations,
credit unions, industrial banks or industrial loan companies,
commercial finance lenders, or insurers, as evidenced by a license,
certificate, or charter issued by the United States or a state,
district, territory, or commonwealth of the United States.
   (C) Trustees of a pension, profit-sharing, or welfare fund, if the
pension, profit-sharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000).
   (D) A corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or a wholly owned
subsidiary of that corporation.
   (E) A syndication or other combination of any of the entities
specified in subparagraph (A), (B), (C), or (D) that is organized to
purchase the promissory note.
   (F) The California Housing Finance Agency or a local housing
finance agency organized under the Health and Safety Code.
   (G) A licensed residential mortgage lender or servicer acting
under the authority of that license.
   (H) An institutional investor that issues mortgage-backed
securities, as specified in paragraph (11) of subdivision (i) of
Section 50003 of the Financial Code.
   (I) A licensed real estate broker selling all or part of the loan,
the note, or the contract to a lender or purchaser specified in
subparagraphs (A) to (H), inclusive.
   (2) The loan or sale is negotiated, or the loan or contract is
being serviced for the owner, under authority of a permit issued
pursuant to applicable provisions of the Corporate Securities Law of
1968 (Division 1 (commencing with Section 25000) of Title 4 of the
Corporations Code).
   (3) The transaction is subject to the requirements of Article 3
(commencing with Section 2956) of Chapter 2 of Title 14 of Part 4 of
Division 3 of the Civil Code.
   (d) If two or more real estate brokers who are not under common
management, direction, or control cooperate in the negotiation of a
loan or the sale or exchange of a promissory note or real property
sales contract and share in the compensation for their services, the
dollar amount of the transaction shall be allocated according to the
ratio that the compensation received by each broker bears to the
total compensation received by all brokers for their services in
negotiating the loan or sale or exchange.
   (e) A real estate broker who meets any of the criteria of
subdivision (a) or (b) shall notify the department in writing within
30 days after that determination is made.
  SEC. 10.  Section 11018.12 of the Business and Professions Code is
amended to read:
   11018.12.  (a) The commissioner may issue a conditional public
report for a subdivision specified in Section 11004.5 if the
requirements of subdivision (e) are met, all deficiencies and
substantive inadequacies in the documents that are required to make
an application for a final public report for the subdivision
substantially complete have been corrected, the material elements of
the setup of the offering to be made under the authority of the
conditional public report have been established, and all requirements
for the issuance of a public report set forth in the regulations of
the commissioner have been satisfied, except for one or more of the
following requirements, as applicable:
   (1) A final map has not been recorded.
   (2) A condominium plan pursuant to subdivision (e) of Section 1351
of the Civil Code has not been recorded.
   (3) A declaration of covenants, conditions, and restrictions
pursuant to Section 1353 of the Civil Code has not been recorded.
   (4) A declaration of annexation has not been recorded.
   (5) A recorded subordination of existing liens to the declaration
of covenants, conditions, and restrictions or declaration of
annexation, or escrow instructions to effect recordation prior to the
first sale, are lacking.
   (6) Filed articles of incorporation are lacking.
   (7) A current preliminary report of a licensed title insurance
company issued after filing of the final map and recording of the
declaration covering all subdivision interests to be included in the
public report has not been provided.
   (8) Other requirements the commissioner determines are likely to
be timely satisfied by the applicant, notwithstanding the fact that
the failure to meet these requirements makes the application
qualitatively incomplete.
   (b) The commissioner may issue a conditional public report for a
subdivision not referred to or specified in Section 11000.1 or
11004.5 if the requirements of subdivision (e) are met, all
deficiencies and substantive inadequacies in the documents that are
required to make an application for a final public report for the
subdivision substantially complete have been corrected, the material
elements of the setup of the offering to be made under the authority
of the conditional public report have been established, and all
requirements for issuance of a public report set forth in the
regulations of the commissioner have been satisfied, except for one
or more of the following requirements, as applicable:
   (1) A final map has not been recorded.
   (2) A declaration of covenants, conditions, and restrictions has
not been recorded.
   (3) A current preliminary report of a licensed title insurance
company issued after filing of the final map and recording of the
declaration covering all subdivision interests to be included in the
public report has not been provided.
   (4) Other requirements the commissioner determines are likely to
be timely satisfied by the applicant, notwithstanding the fact that
the failure to meet these requirements makes the application
qualitatively incomplete.
   (c) A decision by the commissioner to not issue a conditional
public report shall be noticed in writing to the applicant within
five business days and that notice shall specifically state the
reasons why the report is not being issued.
   (d) Notwithstanding the provisions of Section 11018.2, a person
may sell or lease, or offer for sale or lease, lots or parcels in a
subdivision pursuant to a conditional public report if, as a
condition of the sale or lease or offer for sale or lease, delivery
of legal title or other interest contracted for will not take place
until issuance of a public report and provided that the requirements
of subdivision (e) are met.
   (e) (1) Evidence shall be supplied that all purchase money will be
deposited in compliance with subdivision (a) of Section 11013.2 or
subdivision (a) of Section 11013.4, and in the case of a subdivision
referred to in subdivision (a) of this section, evidence shall be
given of compliance with paragraphs (1) and (2) of subdivision (a) of
Section 11018.5.
   (2) A description of the nature of the transaction shall be
supplied.
   (3) Provision shall be made for the return of the entire sum of
money paid or advanced by the purchaser if a subdivision public
report has not been issued within six months of the date of issuance
of the conditional public report or the purchaser is dissatisfied
with the public report because of a change pursuant to Section 11012.

   (f) A subdivider, principal, or his or her agent shall provide a
prospective purchaser a copy of the conditional public report and a
written statement including all of the following:
   (1) Specification of the information required for issuance of a
public report.
   (2) Specification of the information required in the public report
that is not available in the conditional public report, along with a
statement of the reasons why that information is not available at
the time of issuance of the conditional public report.
   (3) A statement that no person acting as a principal or agent
shall sell or lease, or offer for sale or lease, lots or parcels in a
subdivision for which a conditional public report has been issued
except as provided in this article.
   (4) Specification of the requirements of subdivision (e).
   (g) The prospective purchaser shall sign a receipt that he or she
has received and has read the conditional public report and the
written statement provided pursuant to subdivision (f).
   (h) The term of a conditional public report shall not exceed six
months, and may be renewed for one additional term of six months if
the commissioner determines that the requirements for issuance of a
public report are likely to be satisfied during the renewal term.
  SEC. 11.  Section 17539.15 of the Business and Professions Code is
amended to read:
   17539.15.  (a) Solicitation materials containing sweepstakes entry
materials shall not represent, taking into account the context in
which the representation is made, including, without limitation,
emphasis, print, size, color, location, and presentation of the
representation and any qualifying language, that a person is a winner
or has already won a prize unless that person has in fact won a
prize.  If the representation is made on or visible through the
mailing envelope containing the sweepstakes materials, the context in
which the representation is to be considered, including any
qualifying language, shall be limited to what appears on, appears
from, or is visible through the mailing envelope.
   (b) Solicitation materials containing sweepstakes entry materials
shall include a prominent statement of the no-purchase-necessary
message, in readily understandable terms, in the official rules
included in those solicitation materials and, if the official rules
do not appear thereon, on the entry-order device included in those
solicitation materials.  The no-purchase-necessary message included
in the official rules shall be set out in a separate paragraph in the
official rules and be printed in capital letters in contrasting
typeface not smaller than the largest typeface used in the text of
the official rules.
   (c) Sweepstakes entries not accompanied by an order for products
or services shall not be subjected to any disability or disadvantage
in the winner selection process to which an entry accompanied by an
order for products or services would not be subject.
   (d) Sweepstakes materials containing sweepstakes entry materials
shall not represent that an entry in the promotional sweepstakes
accompanied by an order for products or services will be eligible to
receive additional prizes or be more likely to win than an entry not
accompanied by an order for products or services or that an entry not
accompanied by an order for products or services will have a reduced
chance of winning a prize in the promotional sweepstakes.
   (e) For purposes of this section:
   (1) "No-purchase-necessary message" means a statement to the
effect that no purchase is necessary as a condition of entering the
promotional sweepstakes.
   (2) "Official rules" means the formal printed statement, however
designated, of the rules for the promotional sweepstakes appearing in
the solicitation materials.  The official rules shall be prominently
identified and all references thereto in any solicitation materials
shall consistently use the designation for the official rules that
appears in those materials.  Each sweepstakes solicitation shall
contain a copy of the official rules.
  SEC. 12.  Section 17550.14 of the Business and Professions Code is
amended to read:
   17550.14.  (a) The seller of travel has an obligation either to
provide the air or sea transportation or travel services purchased by
the passenger or to make a refund as provided by this section.  The
seller of travel shall return to the passenger all moneys paid for
air or sea transportation or travel services not actually provided to
the passenger, within either of the following periods, whichever is
earlier:
   (1) Thirty days from one of the following dates:
   (A) The scheduled date of departure.
   (B) The day the passenger requests a refund.
   (C) The day of cancellation by the seller of travel.
   (2) Three days from the day the seller of travel is first unable
to provide the air or sea transportation or travel services.
   As used in this section, "unable to provide" includes, but is not
limited to, any day on which the passenger's funds are not in the
trust account required by Section 17550.15 and subdivision (g) of
Section 17750.21 or the funds necessary to provide the passenger's
transportation or travel services have been disbursed other than as
allowed by Section 17550.15 or subdivision (a) of Section 17550.16.
   (b) If the seller of travel has disbursed the passenger's funds
pursuant to paragraph (1), (2), (3), or (4) of subdivision (c) of
Section 17550.15, the seller of travel may, instead of providing a
refund, provide to the passenger a written statement accompanied by
bank records establishing that the passenger's funds were disbursed
as required by those provisions and, if disbursed to a seller of
travel, proof of current registration of that seller of travel.  A
seller of travel who is exempt from the requirements of Section
17550.15 pursuant to subdivision (a) of Section 17550.16 and who is
in compliance with subdivision (a) of Section 17550.16 may comply
with this section by maintaining and providing to the passenger
documentary proof of disbursement in compliance with subdivision (a)
of Section 17550.16, and proof of current registration of the seller
of travel to whom the funds were disbursed, which registration shall
note that the registered seller of travel either has a trust account
in compliance with Section 17550.15, or is exempt from the
requirements of Section 17550.15 pursuant to subdivision (b) or (c)
of Section 17550.16.
   (c) If terms and conditions relating to a refund upon cancellation
by the passenger have been disclosed and agreed to by the passenger
and the passenger elects to cancel for any reason other than a seller
of travel being unable to provide the air or sea transportation or
travel services purchased, the making of a refund in accordance with
those terms and conditions shall be deemed to constitute compliance
with this section.
   (d) Any material misrepresentation by the seller of travel shall
be deemed to be a violation of this article and cancellation by the
seller of travel, necessitating a refund as required by subdivision
(a).
  SEC. 13.  Section 17550.16 of the Business and Professions Code is
amended to read:
   17550.16.  (a) A seller of travel is exempt from the requirements
of subdivisions (a) to (f), inclusive, of Section 17550.15 for all
transactions in which the seller of travel is in compliance with
paragraphs (1) to (6), inclusive, or with paragraph (7).
   (1) The seller of travel sells, provides, furnishes, contracts
for, or arranges air or sea transportation in transactions with
persons in California, only from locations in California, and the air
or sea transportation or travel services are to be furnished by (A)
a registered seller of travel that is in compliance with this article
and Article 2.7 (commencing with Section 17550.35) or (B) an air or
sea carrier.
   (2) The seller of travel forwards the passenger's funds, without
offsetting or reducing the amount forwarded by any amounts due or
claimed in connection with any other transaction, to (A) the provider
of the transportation or travel services, (B) the Airlines Reporting
Corporation, (C) the trust account identified in the registration of
the seller of travel to whom the funds are forwarded, or (D) a
registered seller of travel whose registration states that the
registered seller is exempt pursuant to subdivision (b) or (c) from
the requirements of Section 17550.15, and the seller of travel who
forwards funds pursuant to subparagraph (C) or (D) obtains and keeps
a copy of the registration referred to in subparagraph (C) or (D).
   (3) The seller of travel is an officially appointed agent in good
standing of the Airlines Reporting Corporation and the air
transportation, if any, is sold to the passenger pursuant to that
agency appointment.
   (4) The seller of travel has been in business under the same
ownership for a period of three years, unless acquired or formed by a
registered seller of travel that has been in business under the same
ownership for a period of three years.  For the purposes of this
paragraph, the following shall not constitute a change in ownership:

   (A) Any structural change involving a change in the type of
entity, such as from a corporation to a partnership, and not
involving the addition of any new, underlying ownership interest.
   (B) The deletion of any owner or ownership interest.
   (5) The seller of travel sells, provides, furnishes, contracts
for, or arranges air or sea transportation or travel services only at
retail directly to the general public and not through any other
seller of travel, all of which air or sea transportation and travel
services are to be furnished by other, unrelated providers or sellers
of travel.
   (6) The seller of travel is in compliance with the requirements of
Section 17550.20 and Article 2.7 (commencing with Section 17550.35).
  Any seller of travel seeking to qualify for this exemption shall
provide all information necessary for the Attorney General or his or
her delegate to determine that the seller of travel meets the
criteria set forth in paragraphs (1) to (6), inclusive.
   (7) A seller of travel in a transaction where the air or sea
transportation or travel services are furnished by a business entity
that (A) is located and providing transportation or travel services
outside of the United States and (B) is not in compliance with the
provisions of this article is exempt from the requirements of Section
17550.15 for that transaction if the seller of travel obtains each
passenger's written acknowledgment of receiving, prior to making any
payment, a clear, conspicuous, and complete written disclosure that
the provider of transportation or travel services is not in
compliance with the Seller of Travel Law and the transaction is not
covered by the Travel Consumer Restitution Fund, and of the attendant
risks and consequences thereof.
   (8) If the Attorney General or his or her delegate finds, pursuant
to Section 17550.52, that the Travel Consumer Restitution
Corporation has failed or ceased to operate, a seller of travel who
was a participant in the Travel Consumer Restitution Fund shall no
longer be exempt from compliance with the requirements of Section
17550.15 and 17550.17.
   If Article 2.7 (commencing with Section 17550.35) ceases to
operate for any reason, including, but not limited to, repeal
pursuant to Section 17550.59, no seller of travel shall be exempt
from compliance with the requirements of Sections 17550.15 and
17550.17 unless in compliance with subdivision (b) or (c).
   (b) A seller of travel who is a participant, with respect to all
sales of air or sea transportation and travel services, in a Consumer
Protection Deposit Plan that meets the criteria of paragraphs (1) to
(3), inclusive, and who complies with paragraph (4) need not comply
with Section 17550.15.
   (1) The plan is operated and administered by an entity who
demonstrates to the satisfaction of the Attorney General or his or
her delegate that the operating and administering entity is competent
and reliable and that the plan will achieve fully the purposes and
objectives of this article.  Each approved plan shall include
provisions requiring that each participating seller of travel (A) has
been engaged in business as a seller of travel in the United States
under the same ownership for not less than three years, unless
acquired or formed by a seller of travel already participating and in
good standing in the plan, and (B) has deposited with the
administrator of the plan a minimum of one million dollars
($1,000,000) in security in the form of a bond, letter of credit, or
certificate of deposit, which security shall be (i) in favor solely
of the plan, (ii) held by the plan pursuant to the terms of the plan,
(iii) used solely to refund passenger payments or deposits or to
complete tours, and (iv) payable solely in the event that (I) the
seller of travel fails to refund passenger payments or deposits due
as a result of the bankruptcy, insolvency, or cessation of operations
of the seller of travel or after the cancellation or material
failure by the seller of travel to complete performance of the
passenger's transportation or travel services or (II) the seller of
travel fails to replace the security with another meeting the
criteria set forth in subparagraph (B) no later than 30 days prior to
its expiration.
   (2) Claims filed against the Consumer Protection Deposit Plan are
decided within 45 days of receipt and paid within 30 days of
decision.
   (3) The Consumer Protection Deposit Plan has been reviewed and
approved in writing by the Attorney General or his or her delegate as
meeting the criteria set forth above, including a finding that the
plan will effectuate the purposes of this article.  Should the
approved plan cease to provide the consumer protections set forth in
paragraph (1), the Attorney General or his or her delegate shall
revoke his or her approval immediately.  Upon that revocation, the
seller of travel shall no longer be exempt from compliance with the
requirements of Sections 17550.15 and 17550.17.
   (4) Any participant in a Consumer Protection Deposit Plan seeking
to qualify for this exemption shall provide all information necessary
for the Attorney General or his or her delegate to determine (A)
that the Consumer Protection Deposit Plan in which the seller of
travel is a participant meets the criteria set forth in paragraphs
(1), (2), and (3), (B) that the seller of travel is a participant in
full compliance with the terms and conditions of an approved consumer
protection deposit plan, and (C) provide a written agreement from
the authorized representative of the Consumer Protection Deposit Plan
in which the plan administrator agrees to give the office of the
Attorney General, Consumer Law Section, immediate written and
telephonic notice in the event of termination of the seller of travel'
s participation in the plan.
   (c) A seller of travel who utilizes for all transactions a
Consumer Protection Escrow Plan which meets the criteria of
paragraphs (1) to (6), inclusive, and who complies with paragraph (7)
is exempt from the requirements of Section 17550.15.
   (1) The plan is operated and administered as escrow holder by a
federally insured bank that demonstrates to the Attorney General or
his or her delegate that the manner in which it will administer the
plan will be consistent with the purposes of this article.  Each
approved escrow plan shall include provisions requiring that all air
tickets sold by participants in the plan be issued through the
Airlines Reporting Corporation.
   (2) All funds delivered to the escrow holder, by cash, check,
charge card, or otherwise, are held and disbursed by the escrow
holder for the benefit of, and to protect the interests of, the
passenger.
   (3) All funds are separately accounted for by booking number and
passenger name.
   (4) Claims filed against the escrow plan are decided within 45
days of receipt and paid within 30 days of decision.
                                                      (5) All
passenger funds are to be delivered to the escrow holder as required
by Section 17550.15.
   (6) The Consumer Protection Escrow Plan has been reviewed and
approved in writing by the Attorney General or his or her delegate as
meeting the criteria set forth herein, including a finding that the
plan will effectuate the purposes and objectives of this article.
Should the approved plan cease to provide the consumer protections
set forth in paragraphs (1) to (5), inclusive, the Attorney General
or his or her delegate shall revoke his or her approval of the plan
immediately.  Upon that revocation, the seller of travel shall no
longer be exempt from compliance with the requirements of Sections
17550.15 and 17550.17.
   (7) Any participant in a consumer protection plan seeking to
qualify for this exemption shall provide all information necessary
for the Attorney General or his or her delegate to (A) determine that
the Consumer Protection Escrow Plan in which the seller of travel is
a participant meets the criteria set forth in paragraphs (1) to (6),
inclusive, (B) determine that the seller of travel is a participant
in full compliance with the terms and conditions of an approved
Consumer Protection Escrow Plan, and (C) provide a written agreement
from the authorized representative of the Consumer Protection Escrow
Plan in which the plan administrator agrees to give the office of the
Attorney General, Consumer Law Section, immediate written and
telephonic notice in the event of termination of the seller of travel'
s participation in the plan.
  SEC. 14.  Section 17550.23 of the Business and Professions Code is
amended to read:
   17550.23.  (a) The Travel Consumer Restitution Corporation shall
notify the office of the Attorney General whenever a seller of travel
with its principal place of business in California, which does
business with persons located in California, is in compliance with
Article 2.7 (commencing with Section 17550.35).
   (b) A registration application for a seller of travel who does not
or intends not to comply with the requirements of Section 17550.15
because the seller of travel claims to meet the requirements of
subdivision (b) of Section 17550.16 shall be accompanied by evidence
that the seller of travel is a participant in a Consumer Protection
Deposit Plan that meets the criteria set forth in subdivision (b) of
Section 17550.16.
   (c) A registration application for a seller of travel who does not
or intends not to comply with the requirements of Section 17550.15
because the seller of travel claims to meet the requirements of
subdivision (c) of Section 17550.16 shall be accompanied by evidence
that the seller of travel is a participant in a Consumer Protection
Escrow Plan that meets the criteria set forth in subdivision (c) of
Section 17550.16.
  SEC. 15.  Section 17550.41 of the Business and Professions Code is
amended to read:
   17550.41.  (a) The Board of Directors of the Travel Consumer
Restitution Corporation shall be composed of six directors, as
follows:
   (1) One public consumer representative member appointed by the
Director of Consumer Affairs.
   (2) One employee of the Department of Justice, assigned by the
office of the Attorney General, who shall serve as an ex officio,
nonvoting member.
   (3) Four directors who are participants in the Travel Consumer
Restitution Fund.
   (b) The director appointed pursuant to paragraph (1) of
subdivision (a) shall serve until the appointment is revoked or
another appointment is made, or until the director resigns.
   (c) (1) Participant directors shall be elected by a balloting of
all participants in the Travel Consumer Restitution Fund in an
election to be conducted by the Travel Consumer Restitution
Corporation in February of each year.  Participant directors shall be
elected to serve two-year terms, with two of the four participant
directors being elected each year to staggered two-year terms.
   (2) The Travel Consumer Restitution Corporation shall adopt bylaw
provisions setting forth procedures for the nomination,
qualifications, and election of the four participant directors,
consistent with this section.
   (3) A director who does not qualify to be a participant or who
otherwise becomes unable to serve shall not continue to serve as
director.  The board of the Travel Consumer Restitution Corporation
shall adopt rules setting forth the procedures to determine that a
director is no longer able to serve as a director and for the board
to elect a successor to serve as director until the next election.
  SEC. 16.  Section 19950.2 of the Business and Professions Code is
amended to read:
   19950.2.  (a) On and after the effective date of this chapter,
neither the governing body nor the electors of a county, city, or
city and county that has not authorized legal gaming within its
boundaries prior to January 1, 1996, shall authorize legal gaming.
   (b) No ordinance in effect on January 1, 1996, that authorizes
legal gaming within a city, county, or city and county may be amended
to expand gaming in that jurisdiction beyond that permitted on
January 1, 1996.
   (c) Except as provided in subdivision (d), this section shall
remain operative only until January 1, 2001.
   (d) With respect to Alameda, Contra Costa, Los Angeles, San Mateo,
and Santa Clara Counties only, due to the over-concentration of
gambling establishments in those counties, this section shall remain
operative with respect to those counties until January 1, 2003, and
as of that date is repealed.
  SEC. 17.  Section 21701.1 of the Business and Professions Code is
amended to read:
   21701.1.  (a) The owner or operator of a self-service storage
facility or a household goods carrier, may, for a fee, transport
individual storage containers to and from a self-service storage
facility that he or she owns or operates.  This transportation
activity, whether performed by an owner, operator, or carrier, shall
not be deemed transportation for compensation or hire as a business
of used household goods and is not subject to regulation under
Chapter 7 (commencing with Section 5101) of Division 2 of the Public
Utilities Code, provided that all of the following requirements are
met:
   (1) The fee charged (A) to deliver an empty individual storage
container to a customer and to transport the loaded container to a
self-service storage facility or (B) to return a loaded individual
storage container from a self-service storage facility to the
customer does not exceed one hundred dollars ($100).
   (2) The owner, operator, or carrier, or any affiliate of the
owner, operator, or carrier, does not load, pack, or otherwise handle
the contents of the container.
   (3) The owner, operator, or carrier is registered under Chapter 2
(commencing with Section 34620) of Division 14.85 of the Vehicle Code
or holds a permit under Chapter 7 (commencing with Section 5101) of
Division 2 of the Public Utilities Code.
   (4) The owner, operator, or carrier has procured and maintained
cargo insurance in the amount of at least twenty thousand dollars
($20,000) per shipment.  Proof of cargo insurance coverage shall be
maintained on file and presented to the Department of Motor Vehicles
or Public Utilities Commission upon written request.
   (5) The owner, operator, or carrier shall disclose to the customer
in advance the following information regarding the container
transfer service offered, in a written document separate from others
furnished at the time of disclosure:
   (A) A detailed description of the transfer service, including a
commitment to use its best efforts to place the container in an
appropriate location designated by the customer.
   (B) The dimensions and construction of the individual storage
containers used.
   (C) The unit charge, if any, for the container transfer service
that is in addition to the storage charge or any other fees under the
rental agreement.
   (D) The availability of delivery or pickup by the customer of his
or her goods at the self-service storage facility.
   (E) The maximum allowable distance, measured from the self-service
storage facility, for the initial pickup and final delivery of the
loaded container.
   (F) The precise terms of the company's right to move a container
from the initial storage location at its own discretion and a
statement that the customer will not be required to pay additional
charges with respect to that transfer.
   (G) Conspicuous disclosure in bold text of the allocation of
responsibility for the risk of loss or damage to the customer's
goods, including any disclaimer of the company's liability, and the
procedure for presenting any claim regarding loss or damage to the
company.
   The disclosure of terms and conditions required by this
subdivision, and the rental agreement, shall be received by the
customer a minimum of 72 hours prior to delivery of the empty
individual storage container; however, the customer may, in writing,
knowingly and voluntarily waive that receipt.  The company shall
record in writing, and retain for a period of at least six months
after the end of the rental, the time and method of delivery of the
information, any waiver made by the customer, and the times and dates
of initial pickup and redelivery of the containerized goods.
   (6) No later than the time the empty individual storage container
is delivered to the customer, the company shall provide the customer
with an informational brochure containing the following information
about loading the container:
   (A) Packing and loading tips to minimize damage in transit.
   (B) A suggestion that the customer make an inventory of the items
as they are loaded and keep any other record (for example,
photographs or videotape) that may assist in any subsequent claims
processing.
   (C) A list of items that are impermissible to pack in the
container (for example, flammable items).
   (D) A list of items that are not recommended to be packed in light
of foreseeable hazards inherent in the company's handling of the
containers and in light of any limitation of liability contained in
the rental agreement.
   (b) Pickup and delivery of the individual storage containers shall
be on a date agreed upon between the customer and the company.  If
the company requires the customer to be physically present at the
time of pickup, the company shall in fact be at the customer's
premises prepared to perform the service not more than four hours
later than the scheduled time agreed to by the customer and company,
and in the event of a preventable breach of that obligation by the
company, the customer shall be entitled to receive a penalty of fifty
dollars ($50) from the company and to elect rescission of the rental
agreement without liability.
   (c) No charge shall be assessed with respect to any movement of
the container between self-service storage facilities by the company
at its own discretion, nor for the delivery of a container to a
customer's premises if the customer advises the company, at least 24
hours before the agreed time of container dropoff, orally or in
writing, that he or she is rescinding the request for service.
   (d) For purposes of this chapter, "individual storage container"
means a container that meets all of the following requirements:
   (1) It shall be fully enclosed and locked.
   (2) It contains not less than 100 and not more than 1,100 cubic
feet.
   (3) It is constructed out of a durable material appropriate for
repeated use.  A box constructed out of cardboard or a similar
material shall not constitute an individual storage container for
purposes of this section.
   (e) Nothing in this section shall be construed to limit the
authority of the Public Utilities Commission to investigate and
commence an appropriate enforcement action pursuant to Chapter 7
(commencing with Section 5101) of Division 2 of the Public Utilities
Code against any person transporting household goods in individual
storage containers in a manner other than that described in this
section.
  SEC. 18.  Section 23104.2 of the Business and Professions Code is
amended to read:
   23104.2.  (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer.  No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto.  If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
   (b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:

   (1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
   (B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers.  Temporary status shall be
deemed terminated when operations cease for 15 days or more.  No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
   (2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer.  For
purposes of this subparagraph, "seasonal brand of beer" means a brand
of beer, as defined in Section 23006, that is brewed by a
manufacturer to commemorate a specific holiday season and is so
identified by appropriate product packaging and labeling.
   (B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.  A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
  SEC. 19.  Section 1102.6c of the Civil Code is amended to read:
   1102.6c.  (a) This section shall apply only to any real property
that is subject to one or more of the following:
   (1) Section 8589.3 of the Government Code.
   (2) Section 8589.4 of the Government Code.
   (3) Section 51183.5 of the Government Code.
   (4) Section 2621.9 of the Public Resources Code.
   (5) Section 2694 of the Public Resources Code.
   (6) Section 4136 of the Public Resources Code.
   (b) In addition to the disclosure required pursuant to Section
1102.6, the transferor of any real property that is subject to this
section, or his or her agent, shall deliver to the prospective
transferee the following natural hazard disclosure statement:


                   NATURAL HAZARD DISCLOSURE STATEMENT

  This statement applies to the following property:
_____________________

  The seller and his or her agent(s) disclose the following
information
  with the knowledge that even though this is not a warranty,
prospective
  buyers may rely on this information in deciding whether and on what

  terms to purchase the subject property.  Seller hereby authorizes
any
  agent(s) representing any principal(s) in this action to provide a
copy
  of this statement to any person or entity in connection with any
actual
  or anticipated sale of the property.

  The following are representations made by the seller and his or her

  agent(s) based on their knowledge and maps drawn by the state.
This
  information is a disclosure and is not intended to be part of any
  contract between the buyer and seller.

  THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S):

      A SPECIAL FLOOD HAZARD AREA (any type Zone "A" or "V")
      designated by the Federal Emergency Management Agency.

          Yes _____   No _____    Do not know and information
                                  not available from local
                                  jurisdiction _____________

      AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation

      map pursuant to Section 8589.5 of the Government Code.

          Yes _____   No _____    Do not know and information
                                  not available from local
                                  jurisdiction _____________

      A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178

      or 51179 of the Government Code.  The owner of this property is

      subject to the maintenance requirements of Section 51182 of the

      Government Code.

          Yes _____   No _____

      A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS
      AND HAZARDS pursuant to Section 4125 of the Public Resources
      Code.  The owner of this property is subject to the maintenance

      requirements of Section 4291 of the Public Resources Code.
      Additionally, it is not the state's responsibility to provide
      fire protection services to any building or structure located
      within the wildlands unless the Department of Forestry and Fire

      Protection has entered into a cooperative agreement with a
local
      agency for those purposes pursuant to Section 4142 of the
Public
      Resources Code.

          Yes _____   No _____

      AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public

      Resources Code.

          Yes _____   No _____

      A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public
      Resources Code.

          Yes (Landslide Zone) _____   Yes (Liquefaction Zone) _____
          No  _____                    Map not yet released by
                                         state _____

  THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY,
TO
  OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER.

  THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE
NATURAL
  HAZARDS EXIST.  THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR
NOT
  A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER.  BUYER(S) AND
  SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE
  HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY.

  Seller represents that the information herein is true and correct
to
  the best of the seller's knowledge as of the date signed by the
seller.

  Signature of Seller _____________________   Date
_____________________

  Agent represents that the information herein is true and correct to
the
  best of the agent's knowledge as of the date signed by the agent.

  Signature of Agent ______________________   Date
_____________________
  Signature of Agent ______________________   Date
_____________________

  Buyer represents that he or she has read and understands this
document.

  Signature of Buyer ______________________   Date
_____________________

   (c) If an earthquake fault zone, seismic hazard zone, very high
fire hazard severity zone, or wildland fire area map or accompanying
information is not of sufficient accuracy or scale that a reasonable
person can determine if the subject real property is included in a
natural hazard area, the seller or seller's agent shall mark "Yes" on
the Natural Hazard Disclosure Statement.  The seller or seller's
agent may mark "No" on the Natural Hazard Disclosure Statement if he
or she attaches a report prepared pursuant to subdivision (c) of
Section 1102.4 that verifies the property is not in the hazard zone.
Nothing in this subdivision is intended to limit or abridge any
existing duty of the seller or the seller's agents to exercise
reasonable care in making a determination under this subdivision.
   (d) The disclosure required pursuant to this section may be
provided by the seller and seller's agent in the Local Option Real
Estate Disclosure Statement, provided that the Local Option Real
Estate Disclosure Statement includes substantially the same
information and substantially the same warning that is required by
this section.
   (e) The disclosure required pursuant to this section is only a
disclosure between the seller, the seller's agent, and the buyer, and
shall not be used by any other party, including, but not limited to,
insurance companies, lenders, or governmental agencies, for any
purpose.
   (f) The specification of items for disclosure in this section does
not limit or abridge any obligation for disclosure created by any
other provision of law or that may exist in order to avoid fraud,
misrepresentation, or deceit in the transfer transaction.
   (g) In any transaction in which a seller has accepted, prior to
June 1, 1998, an offer to purchase, the seller, or his or her agent,
shall be deemed to have complied with the requirement of subdivision
(b) if the seller or agent delivers to the prospective transferee a
statement that includes substantially the same information and
warning as the Natural Hazard Disclosure Statement.
  SEC. 20.  Section 1739.7 of the Civil Code is amended to read:
   1739.7.  (a) As used in this section:
   (1) "Autographed" means bearing the actual signature of a
personality signed by that individual's own hand.
   (2) "Collectible" means an autographed sports item, including, but
not limited to, a photograph, book, ticket, plaque, sports program,
trading card, item of sports equipment or clothing, or other sports
memorabilia sold or offered for sale in or from this state by a
dealer to a consumer for five dollars ($5) or more.
   (3) "Consumer" means any natural person who purchases a
collectible from a dealer for personal, family, or household
purposes.  "Consumer" also includes a prospective purchaser meeting
these criteria.
   (4) "Dealer" means a person who is in the business of selling or
offering for sale collectibles in or from this state, exclusively or
nonexclusively, or a person who by his or her occupation holds
himself or herself out as having knowledge or skill peculiar to
collectibles, or to whom that knowledge or skill may be attributed by
his or her employment of an agent or other intermediary that by his
or her occupation holds himself or herself out as having that
knowledge or skill.  "Dealer" includes an auctioneer who sells
collectibles at a public auction, and also includes persons who are
consignors or representatives or agents of auctioneers.  "Dealer"
includes a person engaged in a mail order, telephone order, or cable
television business for the sale of collectibles.
   (5) "Description" means any of the following:
   (A) Any representation in writing, including, but not limited to,
a representation in an advertisement, brochure, catalog, flyer,
invoice, sign, or other commercial or promotional material.
   (B) Any oral representation.
   (C) Any representation included in a radio or television broadcast
to the public in or from this state.
   (6) "Limited edition" means any collectible that meets all of the
following requirements:
   (A) A company has produced a specific quantity of a collectible
and placed it on the open market.
   (B) The producer of the collectible has posted a notice, at its
primary place of business, that it will provide any consumer, upon
request, with a copy of a notice that states the exact number of a
collectible produced in that series of limited editions.
   (C) The producer makes available, upon request of a consumer,
evidence that the electronic encoding, films, molds, or plates used
to create the collectible have been destroyed after the specified
number of collectibles have been produced.
   (D) The sequence number of the collectible and the number of the
total quantity produced in the limited edition are printed on the
collectible.
   (7) "Mint condition" means any collectible sold on the open market
or through a private transaction that meets all of the following
requirements:
   (A) The item has never been circulated, used, or worn.
   (B) The item exhibits little or no sign of aging or degradation
caused by oxidation or exposure to sunlight as a result of its
display.
   (C) The item is otherwise free from creases, blemishes, or marks.

   (8) "Promoter" means a person who arranges, holds, organizes, or
presents a trade show featuring collectibles, autograph signings, or
both.
   (9) "Person" means any natural person, partnership, corporation,
limited liability company, company, trust, association, or other
entity, however organized.
   (b) Whenever a dealer, in selling or offering to sell to a
consumer a collectible in or from this state, provides a description
of that collectible as being autographed, the dealer shall furnish a
certificate of authenticity to the consumer at the time of sale.  The
certificate of authenticity shall be in writing, shall be signed by
the dealer or his or her authorized agent, and shall specify the date
of sale.  The certificate of authenticity shall be in at least
10-point boldface type and shall contain the dealer's true legal name
and street address.  The dealer shall retain a copy of the
certificate of authenticity for not less than seven years.  Each
certificate of authenticity shall do all of the following:

    (1) Describe the collectible and specify the name of the sports
personality who autographed it.
   (2) Either specify the purchase price and date of sale or be
accompanied by a separate invoice setting forth that information.
   (3) Contain an express warranty, which shall be conclusively
presumed to be part of the bargain, of the authenticity of the
collectible.  This warranty shall not be negated or limited by reason
of the lack of words such as "warranty" or "guarantee" or because
the dealer does not have a specific intent or authorization to make
the warranty or because any statement relevant to the collectible is
or purports to be, or is capable of being, merely the dealer's
opinion.
   (4) Specify whether the collectible is offered as one of a limited
edition and, if so, specify (A) how the collectible and edition are
numbered and (B) the size of the edition and the size of any prior or
anticipated future edition, if known.  If the size of the edition
and the size of any prior or anticipated future edition is not known,
the certificate shall contain an explicit statement to that effect.

   (5) Indicate whether the dealer is surety bonded or is otherwise
insured to protect the consumer against errors and omissions of the
dealer and, if bonded or insured, provide proof thereof.
   (6) Indicate the last four digits of the dealer's resale
certificate number from the State Board of Equalization.
   (7) Indicate whether the item was autographed in the presence of
the dealer and specify the date and location of, and the name of a
witness to, the autograph signing.
   (8) Indicate whether the item was obtained or purchased from a
third party.  If so, indicate the name and address of this third
party.
   (9) Include an identifying serial number that corresponds to an
identifying number printed on the collectible item, if any.  The
serial number shall also be printed on the sales receipt.  If the
sales receipt is printed electronically, the dealer may manually
write the serial number on the receipt.
   (c) No dealer shall represent an item as a collectible if it was
not autographed by the sports personality in his or her own hand.
   (d) No dealer shall display or offer for sale a collectible in
this state unless, at the location where the collectible is offered
for sale and in close proximity to the collectible merchandise, there
is a conspicuous sign that reads as follows:
"SALE OF AUTOGRAPHED SPORTS MEMORABILIA:  AS REQUIRED BY LAW, A
DEALER WHO SELLS TO A CONSUMER ANY SPORTS MEMORABILIA DESCRIBED AS
BEING AUTOGRAPHED MUST PROVIDE A WRITTEN CERTIFICATE OF AUTHENTICITY
AT THE TIME OF SALE.  THIS DEALER MAY BE SURETY BONDED OR OTHERWISE
INSURED TO ENSURE THE AUTHENTICITY OF ANY COLLECTIBLE SOLD BY THIS
DEALER."

   (e) Any dealer engaged in a mail-order or telephone-order business
for the sale of collectibles in or from this state:
   (1) Shall include the disclosure specified in subdivision (d), in
type of conspicuous size, in any written advertisement relating to a
collectible.
   (2) Shall include in each television advertisement relating to a
collectible the following written on-screen message, which shall be
prominently displayed, easily readable, and clearly visible for no
less than five seconds, and which shall be repeated for five seconds
once during each four-minute segment of the advertisement following
the initial four minutes:
"A written certificate of authenticity is provided with each
autographed collectible, as required by law.  This dealer may be
surety bonded or otherwise insured to ensure the authenticity of any
collectible sold by this dealer."

   (3) Shall include as part of the oral message of each radio
advertisement for a collectible the disclosure specified in
subdivision (d).
   (f) No dealer shall display or offer for sale a collectible in
this state at any trade show or similar event primarily featuring
sales of collectibles or other sports memorabilia that offers onsite
admission ticket sales unless, at each onsite location where
admission tickets are sold, there is prominently displayed a specimen
example of a certificate of authenticity.
   (g) Any consumer injured by the failure of a dealer to provide a
certificate of authenticity containing the information required by
this section, or by a dealer's furnishing of a certificate of
authenticity that is false, shall be entitled to recover, in addition
to actual damages, a civil penalty in an amount equal to 10 times
actual damages, plus court costs, reasonable attorney's fees,
interest, and expert witness fees, if applicable, incurred by the
consumer in the action.  The court, in its discretion, may award
additional damages based on the egregiousness of the dealer's
conduct.  The remedy specified in this section is in addition to, and
not in lieu of, any other remedy that may be provided by law.
   (h) No person shall represent himself or herself as a dealer in
this state unless he or she possesses a valid resale certificate
number from the State Board of Equalization.
   (i) A dealer may be surety bonded or otherwise insured for
purposes of indemnification against errors and omissions arising from
the authentication, sale, or resale of collectibles.
   (j) Whenever a promoter arranges or organizes a trade show
featuring collectibles and autograph signings, the promoter shall
notify, in writing, any dealer who has agreed to purchase or rent
space in this trade show what the promoter will do if any laws of
this state are violated, including the fact that law enforcement
officials will be contacted when those laws are violated.  This
notice shall be delivered to the dealer, at his or her registered
place of business, at the time the agreement to purchase space in the
trade show is made.  The following language shall be included in
each notice:

   "As a vendor at this collectibles trade show, you are a
professional representative of this hobby.  As a result, you will be
required to follow the laws of this state, including laws regarding
the sale and display of collectibles, as defined in Section 1739.7 of
the Civil Code, forged and counterfeit collectibles and autographs,
and mint and limited edition collectibles.  If you do not obey the
laws, you may be evicted from this trade show, be reported to law
enforcement, and be held liable for a civil penalty of 10 times the
amount of damages."

  SEC. 21.  Section 1793.22 of the Civil Code is amended to read:
   1793.22.  (a) This section shall be known and may be cited as the
Tanner Consumer Protection Act.
   (b) It shall be presumed that a reasonable number of attempts have
been made to conform a new motor vehicle to the applicable express
warranties if, within one year from delivery to the buyer or 12,000
miles on the odometer of the vehicle, whichever occurs first, either
(1) the same nonconformity has been subject to repair four or more
times by the manufacturer or its agents and the buyer has at least
once directly notified the manufacturer of the need for the repair of
the nonconformity or (2) the vehicle is out of service by reason of
repair of nonconformities by the manufacturer or its agents for a
cumulative total of more than 30 calendar days since delivery of the
vehicle to the buyer.  The 30-day limit shall be extended only if
repairs cannot be performed due to conditions beyond the control of
the manufacturer or its agents.  The buyer shall be required to
directly notify the manufacturer pursuant to paragraph (1) only if
the manufacturer has clearly and conspicuously disclosed to the
buyer, with the warranty or the owner's manual, the provisions of
this section and of subdivision (d) of Section 1793.2, including the
requirement that the buyer must notify the manufacturer directly
pursuant to paragraph (1).  This presumption shall be a rebuttable
presumption affecting the burden of proof, and it may be asserted by
the buyer in any civil action, including an action in small claims
court, or other formal or informal proceeding.
   (c) If a qualified third-party dispute resolution process exists,
and the buyer receives timely notification in writing of the
availability of that qualified third-party dispute resolution process
with a description of its operation and effect, the presumption in
subdivision (b) may not be asserted by the buyer until after the
buyer has initially resorted to the qualified third-party dispute
resolution process as required in subdivision (d).  Notification of
the availability of the qualified third-party dispute resolution
process is not timely if the buyer suffers any prejudice resulting
from any delay in giving the notification.  If a qualified
third-party dispute resolution process does not exist, or if the
buyer is dissatisfied with that third-party decision, or if the
manufacturer or its agent neglects to promptly fulfill the terms of
the qualified third-party dispute resolution process decision after
the decision is accepted by the buyer, the buyer may assert the
presumption provided in subdivision (b) in an action to enforce the
buyer's rights under subdivision (d) of Section 1793.2.  The findings
and decision of a qualified third-party dispute resolution process
shall be admissible in evidence in the action without further
foundation.  Any period of limitation of actions under any federal or
California laws with respect to any person shall be extended for a
period equal to the number of days between the date a complaint is
filed with a third-party dispute resolution process and the date of
its decision or the date before which the manufacturer or its agent
is required by the decision to fulfill its terms if the decision is
accepted by the buyer, whichever occurs later.
   (d) A qualified third-party dispute resolution process shall be
one that does all of the following:
   (1) Complies with the minimum requirements of the Federal Trade
Commission for informal dispute settlement procedures as set forth in
Part 703 of Title 16 of the Code of Federal Regulations, as those
regulations read on January 1, 1987.
   (2) Renders decisions that are binding on the manufacturer if the
buyer elects to accept the decision.
   (3) Prescribes a reasonable time, not to exceed 30 days after the
decision is accepted by the buyer, within which the manufacturer or
its agent must fulfill the terms of its decisions.
   (4) Provides arbitrators who are assigned to decide disputes with
copies of, and instruction in, the provisions of the Federal Trade
Commission's regulations in Part 703 of Title 16 of the Code of
Federal Regulations, as those regulations read on January 1, 1987,
Division 2 (commencing with Section 2101) of the Commercial Code, and
this chapter.
   (5) Requires the manufacturer, when the process orders, under the
terms of this chapter, either that the nonconforming motor vehicle be
replaced if the buyer consents to this remedy or that restitution be
made to the buyer, to replace the motor vehicle or make restitution
in accordance with paragraph (2) of subdivision (d) of Section
1793.2.
   (6) Provides, at the request of the arbitrator or a majority of
the arbitration panel, for an inspection and written report on the
condition of a nonconforming motor vehicle, at no cost to the buyer,
by an automobile expert who is independent of the manufacturer.
   (7) Takes into account, in rendering decisions, all legal and
equitable factors, including, but not limited to, the written
warranty, the rights and remedies conferred in regulations of the
Federal Trade Commission contained in Part 703 of Title 16 of the
Code of Federal Regulations as those regulations read on January 1,
1987, Division 2 (commencing with Section 2101) of the Commercial
Code, this chapter, and any other equitable considerations
appropriate under the circumstances.  Nothing in this chapter
requires that, to be certified as a qualified third-party dispute
resolution process pursuant to this section, decisions of the process
must consider or provide remedies in the form of awards of punitive
damages or multiple damages, under subdivision (c) of Section 1794,
or of attorney's fees under subdivision (d) of Section 1794, or of
consequential damages other than as provided in subdivisions (a) and
(b) of Section 1794, including, but not limited to, reasonable
repair, towing, and rental car costs actually incurred by the buyer.

   (8) Requires that no arbitrator deciding a dispute may be a party
to the dispute and that no other person, including an employee,
agent, or dealer for the manufacturer, may be allowed to participate
substantively in the merits of any dispute with the arbitrator unless
the buyer is allowed to participate also.  Nothing in this
subdivision prohibits any member of an arbitration board from
deciding a dispute.
   (9) Obtains and maintains certification by the Department of
Consumer Affairs pursuant to Chapter 9 (commencing with Section 472)
of Division 1 of the Business and Professions Code.
   (e) For the purposes of subdivision (d) of Section 1793.2 and this
section, the following terms have the following meanings:
   (1) "Nonconformity" means a nonconformity that substantially
impairs the use, value, or safety of the new motor vehicle to the
buyer or lessee.
   (2) "New motor vehicle" means a new motor vehicle that is used or
bought for use primarily for personal, family, or household purposes.
  "New motor vehicle" also means a new motor vehicle that is bought
or used for business and personal, family, or household purposes by a
person, including a partnership, limited liability company,
corporation, association, or any other legal entity, to which not
more than five motor vehicles are registered in this state.  "New
motor vehicle" includes the chassis, chassis cab, and that portion of
a motor home devoted to its propulsion, but does not include any
portion designed, used, or maintained primarily for human habitation,
a dealer-owned vehicle and a "demonstrator" or other motor vehicle
sold with a manufacturer's new car warranty, but does not include a
motorcycle or a motor vehicle that is not registered under the
Vehicle Code because it is to be operated or used exclusively off the
highways. A"demonstrator" is a vehicle assigned by a dealer for the
purpose of demonstrating qualities and characteristics common to
vehicles of the same or similar model and type.
   (3) "Motor home" means a vehicular unit, designed for human
habitation for recreational or emergency occupancy, that is built on,
or permanently attached to, a self-propelled motor vehicle chassis,
chassis cab, or van, that becomes an integral part of the completed
vehicle.
   (f) (1) Except as provided in paragraph (2), no person shall sell,
either at wholesale or retail, lease, or transfer a motor vehicle
transferred by a buyer or lessee to a manufacturer pursuant to
paragraph (2) of subdivision (d) of Section 1793.2 or a similar
statute of any other state, unless the nature of the nonconformity
experienced by the original buyer or lessee is clearly and
conspicuously disclosed to the prospective buyer, lessee, or
transferee, the nonconformity is corrected, and the manufacturer
warrants to the new buyer, lessee, or transferee in writing for a
period of one year that the motor vehicle is free of that
nonconformity.
   (2) Except for the requirement that the nature of the
nonconformity be disclosed to the transferee, paragraph (1) does not
apply to the transfer of a motor vehicle to an educational
institution if the purpose of the transfer is to make the motor
vehicle available for use in automotive repair courses.
  SEC. 22.  Section 1815 of the Civil Code is amended to read:
   1815.  An involuntary deposit is made:
   (a) By the accidental leaving or placing of personal property in
the possession of any person, without negligence on the part of its
owner.
   (b) In cases of fire, shipwreck, inundation, insurrection, riot,
or like extraordinary emergencies, by the owner of personal property
committing it, out of necessity, to the care of any person.
   (c) By the delivery to, or picking up by, and the holding of, a
stray live animal by any person or public or private entity.
  SEC. 23.  Section 3269 of the Civil Code is amended to read:
   3269.  For purposes of this title, the following definitions
apply:
   (a) "Year 2000 Problem" means any expected or actual computing,
physical, enterprise, or distribution system complications that may
occur in any computer system, computer program, software application,
embedded systems, embedded chip calculations, or other computing
application as a result of the year change from 1999 to 2000.  These
complications are often associated with the common programming
practice of using a two-digit field to represent a year, resulting in
erroneous date calculations, an ambiguous interpretation of the term
"00," the failure to recognize the year 2000 as a leap year, the use
of algorithms that use the year "99" or "00" as a flag for another
function, or the use of applications, software, or hardware that are
date sensitive.
   (b) "Information" means any assessment, projection, estimate,
planning document, objective, timetable, test plan, test date, or
test result related to the implementation or verification of Year
2000 Problem processing capabilities of a computer system, computer
program, software application, embedded systems, embedded chip
calculations, or other computing application and intended to solve a
Year 2000 Problem.
   (c) "Disclosure" and "discloses" mean any dissemination or
provision of information without any expectation or right to
remuneration or fee therefor.
   (d) "Person" means any individual, corporation, partnership,
business entity, joint venture, association, the State of California
or any of its subdivisions, or any other organization, or any
combination thereof.
  SEC. 24.  Section 631 of the Code of Civil Procedure is amended to
read:
   631.  (a) Trial by jury may be waived by the several parties to an
issue of fact in any of the following ways:
   (1) By failing to appear at the trial.
   (2) By written consent filed with the clerk or judge.
   (3) By oral consent, in open court, entered in the minutes or
docket.
   (4) By failing to announce that a jury is required, at the time
the cause is first set for trial, if it is set upon notice or
stipulation, or within five days after notice of setting if it is set
without notice or stipulation.
   (5) By failing to deposit with the clerk, or judge, advance jury
fees 25 days prior to the date set for trial, except in unlawful
detainer actions where the fees shall be deposited at least five days
prior to the date set for trial, or as provided by subdivision (b).
The advance jury fee shall not exceed the amount necessary to pay
the average mileage and fees of 20 trial jurors for one day in the
court to which the jurors are summoned.
   (6) By failing to deposit with the clerk or judge, promptly after
the impanelment of the jury, a sum equal to the mileage or
transportation (if allowed by law) of the jury accrued up to that
time.
   (7) By failing to deposit with the clerk or judge, at the
beginning of the second and each succeeding day's session a sum equal
to one day's fees of the jury, and the mileage or transportation, if
any.
   (b) In a superior court action, other than a limited civil case,
if a jury is demanded by either party in the memorandum to set the
cause for trial and the party, prior to trial, by announcement or by
operation of law, waives a trial by jury, then all adverse parties
shall have five days following the receipt of notice of the waiver to
file and serve a demand for a trial by jury and to deposit any
advance jury fees that are then due.
   (c) When the party who has demanded trial by jury either (1)
waives the trial upon or after the assignment for trial to a specific
department of the court, or upon or after the commencement of the
trial, or (2) fails to deposit the fees as provided in paragraph (6)
of subdivision (a), trial by jury shall be waived by the other party
by either failing promptly to demand trial by jury before the judge
in whose department the waiver, other than for the failure to deposit
the fees, was made, or by failing promptly to deposit the fees
described in paragraph (6) of subdivision (a).
   (d) The court may, in its discretion upon just terms, allow a
trial by jury although there may have been a waiver of a trial by
jury.
  SEC. 25.  Section 1167.3 of the Code of Civil Procedure is amended
to read:
   1167.3.  In any action under this chapter, unless otherwise
ordered by the court for good cause shown, the time allowed the
defendant to answer the complaint, answer the complaint if amended,
or amend the answer under paragraph (2), (3), (5), (6), or (7) of
subdivision (a) of Section 586 shall not exceed five days.
  SEC. 26.  Section 25102 of the Corporations Code is amended to
read:
   25102.  The following transactions are exempted from the
provisions of Section 25110:
   (a) Any offer (but not a sale) not involving any public offering
and the execution and delivery of any agreement for the sale of
securities pursuant to the offer if (1) the agreement contains
substantially the following provision:  "The sale of the securities
that are the subject of this agreement has not been qualified with
the Commissioner of Corporations of the State of California and the
issuance of the securities or the payment or receipt of any part of
the consideration therefor prior to the qualification is unlawful,
unless the sale of securities is exempt from the qualification by
Section 25100, 25102, or 25105 of the California Corporations Code.
The rights of all parties to this agreement are expressly conditioned
upon the qualification being obtained, unless the sale is so exempt"
; and (2) no part of the purchase price is paid or received and none
of the securities are issued until the sale of the securities is
qualified under this law unless the sale of securities is exempt from
the qualification by this section, Section 25100, or 25105.
   (b) Any offer (but not a sale) of a security for which a
registration statement has been filed under the Securities Act of
1933 but has not yet become effective, or for which an offering
statement under Regulation A has been filed but has not yet been
qualified, if no stop order or refusal order is in effect and no
public proceeding or examination looking toward such an order is
pending under Section 8 of the act and no order under Section 25140
or subdivision (a) of Section 25143 is in effect under this law.
   (c) Any offer (but not a sale) and the execution and delivery of
any agreement for the sale of securities pursuant to the offer as may
be permitted by the commissioner upon application.  Any negotiating
permit under this subdivision shall be conditioned to the effect that
none of the securities may be issued and none of the consideration
therefor may be received or accepted until the sale of the securities
is qualified under this law.
   (d) Any transaction or agreement between the issuer and an
underwriter or among underwriters if the sale of the securities is
qualified, or exempt from qualification, at the time of distribution
thereof in this state, if any.
   (e) Any offer or sale of any evidence of indebtedness, whether
secured or unsecured, and any guarantee thereof, in a transaction not
involving any public offering.
   (f) Any offer or sale of any security in a transaction (other than
an offer or sale to a pension or profit-sharing trust of the issuer)
that meets each of the following criteria:
   (1) Sales of the security are not made to more than 35 persons,
including persons not in this state.
   (2) All purchasers either have a preexisting personal or business
relationship with the offeror or any of its partners, officers,
directors or controlling persons, or managers (as appointed or
elected by the members) if the offeror is a limited liability
company, or by reason of their business or financial experience or
the business or financial experience of their professional advisors
who are unaffiliated with and who are not compensated by the issuer
or any affiliate or selling agent of the issuer, directly or
indirectly, could be reasonably assumed to have the capacity to
protect their own interests in connection with the transaction.
   (3) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account (or a trust account if the purchaser is
a trustee) and not with a view to or for sale in connection with any
distribution of the security.
   (4) The offer and sale of the security is not accomplished by the
publication of any advertisement.  The number of purchasers referred
to above is exclusive of any described in subdivision (i), any
officer, director, or affiliate of the issuer, or manager (as
appointed or elected by the members) if the issuer is a limited
liability company, and any other purchaser who the commissioner
designates by rule.  For purposes of this section, a husband and wife
(together with any custodian or trustee acting for the account of
their minor children) are counted as one person and a partnership,
corporation, or other organization that was not specifically formed
for the purpose of purchasing the security offered in reliance upon
this exemption, is counted as one person.  The commissioner may by
rule require the issuer to file a notice of transactions under this
subdivision.  However, the failure to file the notice or the failure
to file the notice within the time specified by the rule of the
commissioner shall not affect the availability of this exemption.  An
issuer who fails to file the notice as provided by rule of the
commissioner shall, within 15 business days after demand by the
commissioner, file the notice and pay to the commissioner a fee equal
to the fee payable had the transaction been qualified under Section
25110.
   (g) Any offer or sale of conditional sale agreements, equipment
trust certificates, or certificates of interest or participation
therein or partial assignments thereof, covering the purchase of
railroad rolling stock or equipment or the purchase of motor
vehicles, aircraft, or parts thereof, in a transaction not involving
any public offering.
   (h) Any offer or sale of voting common stock by a corporation
incorporated in any state if, immediately after the proposed sale and
issuance, there will be only one class of stock of the corporation
outstanding that is owned beneficially by no more than 35 persons,
provided all of the following requirements have been met:
   (1) The offer and sale of the stock is not accompanied by the
publication of any advertisement, and no selling expenses have been
given, paid, or incurred in connection therewith.
                                             (2) The consideration to
be received by the issuer for the stock to be issued consists of any
of the following:
   (A) Only assets (which may include cash) of an existing business
enterprise transferred to the issuer upon its initial organization,
of which all of the persons who are to receive the stock to be issued
pursuant to this exemption were owners during, and the enterprise
was operated for, a period of not less than one year immediately
preceding the proposed issuance, and the ownership of the enterprise
immediately prior to the proposed issuance was in the same
proportions as the shares of stock are to be issued.
   (B) Only cash or cancellation of indebtedness for money borrowed,
or both, upon the initial organization of the issuer, provided all of
the stock is issued for the same price per share.
   (C) Only cash, provided the sale is approved in writing by each of
the existing shareholders and the purchaser or purchasers are
existing shareholders.
   (D) In a case where after the proposed issuance there will be only
one owner of the stock of the issuer, only any legal consideration.

   (3) No promotional consideration has been given, paid, or incurred
in connection with the issuance.  Promotional consideration means
any consideration paid directly or indirectly to a person who, acting
alone or in conjunction with one or more other persons, takes the
initiative in founding and organizing the business or enterprise of
an issuer for services rendered in connection with the founding or
organizing.
   (4) A notice in a form prescribed by rule of the commissioner,
signed by an active member of the State Bar of California, is filed
with or mailed for filing to the commissioner not later than 10
business days after receipt of consideration for the securities by
the issuer.  That notice shall contain an opinion of the member of
the State Bar of California that the exemption provided by this
subdivision is available for the offer and sale of the securities.
However, the failure to file the notice as required by this
subdivision and the rules of the commissioner shall not affect the
availability of this exemption.  An issuer who fails to file the
notice within the time specified by this subdivision shall, within 15
business days after demand by the commissioner, file the notice and
pay to the commissioner a fee equal to the fee payable had the
transaction been qualified under Section 25110.  The notice, except
when filed on behalf of a California corporation, shall be
accompanied by an irrevocable consent, in the form that the
commissioner by rule prescribes, appointing the commissioner or his
or her successor in office to be the issuer's attorney to receive
service of any lawful process in any noncriminal suit, action, or
proceeding against it or its successor that arises under this law or
any rule or order hereunder after the consent has been filed, with
the same force and validity as if served personally on the issuer.
An issuer on whose behalf a consent has been filed in connection with
a previous qualification or exemption from qualification under this
law (or application for a permit under any prior law if the
application or notice under this law states that the consent is still
effective) need not file another.  Service may be made by leaving a
copy of the process in the office of the commissioner, but it is not
effective unless (A) the plaintiff, who may be the commissioner in a
suit, action, or proceeding instituted by him or her, forthwith sends
notice of the service and a copy of the process by registered or
certified mail to the defendant or respondent at its last address on
file with the commissioner, and (B) the plaintiff's affidavit of
compliance with this section is filed in the case on or before the
return day of the process, if any, or within the further time as the
court allows.
   (5) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account, or a trust account if the purchaser is
a trustee, and not with a view to or for sale in connection with any
distribution of the stock.
   For the purposes of this subdivision, all securities held by a
husband and wife, whether or not jointly, shall be considered to be
owned by one person, and all securities held by a corporation that
has issued stock pursuant to this exemption shall be considered to be
held by the shareholders to whom it has issued the stock.
   All stock issued by a corporation pursuant to this subdivision as
it existed prior to the effective date of the amendments to this
section made during the 1996 portion of the 1995-96 Regular Session
that required the issuer to have stamped or printed prominently on
the face of the stock certificate a legend in a form prescribed by
rule of the commissioner restricting transfer of the stock in a
manner provided for by that rule shall not be subject to the transfer
restriction legend requirement and, by operation of law, the
corporation is authorized to remove that transfer restriction legend
from the certificates of those shares of stock issued by the
corporation pursuant to this subdivision as it existed prior to the
effective date of the amendments to this section made during the 1996
portion of the 1995-96 Regular Session.
   (i) Any offer or sale (1) to a bank, savings and loan association,
trust company, insurance company, investment company registered
under the Investment Company Act of 1940, pension or profit-sharing
trust (other than a pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or individual retirement
account), or other institutional investor or governmental agency or
instrumentality that the commissioner may designate by rule, whether
the purchaser is acting for itself or as trustee, or (2) to any
corporation with outstanding securities registered under Section 12
of the Securities Exchange Act of 1934 or any wholly owned subsidiary
of the corporation that after the offer and sale will own directly
or indirectly 100 percent of the outstanding capital stock of the
issuer, provided the purchaser represents that it is purchasing for
its own account (or for the trust account) for investment and not
with a view to or for sale in connection with any distribution of the
security.
   (j) Any offer or sale of any certificate of interest or
participation in an oil or gas title or lease (including subsurface
gas storage and payments out of production) if either of the
following apply:
   (1) All of the purchasers meet one of the following requirements:

   (A) Are and have been during the preceding two years engaged
primarily in the business of drilling for, producing, or refining oil
or gas (or whose corporate predecessor, in the case of a
corporation, has been so engaged).
   (B) Are persons described in clause (1) of subdivision (i).
   (C) Have been found by the commissioner upon written application
to be substantially engaged in the business of drilling for,
producing, or refining oil or gas so as not to require the protection
provided by this law (which finding shall be effective until
rescinded).
   (2) The security is concurrently hypothecated to a bank in the
ordinary course of business to secure a loan made by the bank,
provided that each purchaser represents that it is purchasing for its
own account for investment and not with a view to or for sale in
connection with any distribution of the security.
   (k) Any offer or sale of any security under, or pursuant to, a
plan of reorganization under Chapter 11 of the federal bankruptcy law
that has been confirmed or is subject to confirmation by the decree
or order of a court of competent jurisdiction.
   (l) Any offer or sale of an option, warrant, put, call, or
straddle, and any guarantee of any of these securities, by a person
who is not the issuer of the security subject to the right, if the
transaction, had it involved an offer or sale of the security subject
to the right by the person, would not have violated Section 25110 or
25130.
   (m) Any offer or sale of a stock to a pension, profit-sharing,
stock bonus, or employee stock ownership plan, provided that (1) the
plan meets the requirements for qualification under Section 401 of
the Internal Revenue Code, and (2) the employees are not required or
permitted individually to make any contributions to the plan.  The
exemption provided by this subdivision shall not be affected by
whether the stock is contributed to the plan, purchased from the
issuer with contributions by the issuer or an affiliate of the
issuer, or purchased from the issuer with funds borrowed from the
issuer, an affiliate of the issuer, or any other lender.
   (n) Any offer or sale of any security in a transaction, other than
an offer or sale of a security in a rollup transaction, that meets
all of the following criteria:
   (1) The issuer is (A) a California corporation or foreign
corporation that, at the time of the filing of the notice required
under this subdivision, is subject to Section 2115, or (B) any other
form of business entity, including without limitation a partnership
or trust organized under the laws of this state.  The exemption
provided by this subdivision is not available to a "blind pool"
issuer, as that term is defined by the commissioner, or to an
investment company subject to the Investment Company Act of 1940.
   (2) Sales of securities are made only to qualified purchasers or
other persons the issuer reasonably believes, after reasonable
inquiry, to be qualified purchasers.  A corporation, partnership, or
other organization specifically formed for the purpose of acquiring
the securities offered by the issuer in reliance upon this exemption
may be a qualified purchaser if each of the equity owners of the
corporation, partnership, or other organization is a qualified
purchaser.  Qualified purchasers include the following:
   (A) A person designated in Section 260.102.13 of Title 10 of the
California Code of Regulations.
   (B) A person designated in subdivision (i) or any rule of the
commissioner adopted thereunder.
   (C) A pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or an individual retirement
account, if the investment decisions made on behalf of the trust,
plan, or account are made solely by persons who are qualified
purchasers.
   (D) An organization described in Section 501(c)(3) of the Internal
Revenue Code, corporation, Massachusetts or similar business trust,
or partnership, each with total assets in excess of five million
dollars ($5,000,000) according to its most recent audited financial
statements.
   (E) With respect to the offer and sale of one class of voting
common stock of an issuer or of preferred stock of an issuer
entitling the holder thereof to at least the same voting rights as
the issuer's one class of voting common stock, provided that the
issuer has only one-class voting common stock outstanding upon
consummation of the offer and sale, a natural person who, either
individually or jointly with the person's spouse, (i) has a minimum
net worth of two hundred fifty thousand dollars ($250,000) and had,
during the immediately preceding tax year, gross income in excess of
one hundred thousand dollars ($100,000) and reasonably expects gross
income in excess of one hundred thousand dollars ($100,000) during
the current tax year or (ii) has a minimum net worth of five hundred
thousand dollars ($500,000).  "Net worth" shall be determined
exclusive of home, home furnishings, and automobiles.  Other assets
included in the computation of net worth may be valued at fair market
value.
   Each natural person specified above, by reason of his or her
business or financial experience, or the business or financial
experience of his or her professional advisor, who is unaffiliated
with and who is not compensated, directly or indirectly, by the
issuer or any affiliate or selling agent of the issuer, can be
reasonably assumed to have the capacity to protect his or her
interests in connection with the transaction.  The amount of the
investment of each natural person shall not exceed 10 percent of the
net worth, as determined by this subparagraph, of that natural
person.
   (F) Any other purchaser designated as qualified by rule of the
commissioner.
   (3) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account (or trust account, if the purchaser is a
trustee) and not with a view to or for sale in connection with a
distribution of the security.
   (4) Each natural person purchaser, including a corporation,
partnership, or other organization specifically formed by natural
persons for the purpose of acquiring the securities offered by the
issuer, receives, at least five business days before securities are
sold to, or a commitment to purchase is accepted from, the purchaser,
a written offering disclosure statement that shall meet the
disclosure requirements of Regulation D (17 C.F.R. 230.501 et seq.),
and any other information as may be prescribed by rule of the
commissioner, provided that the issuer shall not be obligated
pursuant to this paragraph to provide this disclosure statement to a
natural person qualified under Section 260.102.13 of Title 10 of the
California Code of Regulations.  The offer or sale of securities
pursuant to a disclosure statement required by this paragraph that is
in violation of Section 25401, or that fails to meet the disclosure
requirements of Regulation D (17 C.F.R.  230.501 et seq.), shall not
render unavailable to the issuer the claim of an exemption from
Section 25110 afforded by this subdivision.  This paragraph does not
impose, directly or indirectly, any additional disclosure obligation
with respect to any other exemption from qualification available
under any other provision of this section.
   (5) (A) A general announcement of proposed offering may be
published by written document only, provided that the general
announcement of proposed offering sets forth the following required
information:
   (i) The name of the issuer of the securities.
   (ii) The full title of the security to be issued.
   (iii) The anticipated suitability standards for prospective
purchasers.
   (iv) A statement that (I) no money or other consideration is being
solicited or will be accepted, (II) an indication of interest made
by a prospective purchaser involves no obligation or commitment of
any kind, and, if the issuer is required by paragraph (4) to deliver
a disclosure statement to prospective purchasers, (III) no sales will
be made or commitment to purchase accepted until five business days
after delivery of a disclosure statement and subscription information
to the prospective purchaser in accordance with the requirements of
this subdivision.
   (v) Any other information required by rule of the commissioner.
   (vi) The following legend:  "For more complete information about
(Name of Issuer) and (Full Title of Security), send for additional
information from (Name and Address) by sending this coupon or calling
(Telephone Number)."
   (B) The general announcement of proposed offering referred to in
subparagraph (A) may also set forth the following information:
   (i) A brief description of the business of the issuer.
   (ii) The geographic location of the issuer and its business.
   (iii) The price of the security to be issued, or, if the price is
not known, the method of its determination or the probable price
range as specified by the issuer, and the aggregate offering price.
   (C) The general announcement of proposed offering shall contain
only the information that is set forth in this paragraph.
   (D) Dissemination of the general announcement of proposed offering
to persons who are not qualified purchasers, without more, shall not
disqualify the issuer from claiming the exemption under this
subdivision.
   (6) No telephone solicitation shall be permitted until the issuer
has determined that the prospective purchaser to be solicited is a
qualified purchaser.
   (7) The issuer files a notice of transaction under this
subdivision both (A) concurrent with the publication of a general
announcement of proposed offering or at the time of the initial offer
of the securities, whichever occurs first, accompanied by a filing
fee, and (B) within 10 business days following the close or
abandonment of the offering, but in no case more than 210 days from
the date of filing the first notice.  The first notice of transaction
under subparagraph (A) shall contain an undertaking, in a form
acceptable to the commissioner, to deliver any disclosure statement
required by paragraph (4) to be delivered to prospective purchasers,
and any supplement thereto, to the commissioner within 10 days of the
commissioner's request for the information.  The exemption from
qualification afforded by this subdivision is unavailable if an
issuer fails to file the first notice required under subparagraph (A)
or to pay the filing fee.  The commissioner has the authority to
assess an administrative penalty of up to one thousand dollars
($1,000) against an issuer that fails to deliver the disclosure
statement required to be delivered to the commissioner upon the
commissioner's request within the time period set forth above.
Neither the filing of the disclosure statement nor the failure by the
commissioner to comment thereon precludes the commissioner from
taking any action deemed necessary or appropriate under this division
with respect to the offer and sale of the securities.
   (o) An offer or sale of any security issued pursuant to a stock
purchase plan or agreement, or issued pursuant to a stock option plan
or agreement, where the security is exempt from registration under
the Securities Act of 1933, as amended, pursuant to Rule 701 adopted
pursuant to that act (17 C.F.R.  230.701), the provisions of which
are hereby incorporated by reference into this section, provided that
(1) the terms of any stock purchase plan or agreement shall comply
with Sections 260.140.42, 260.140.45, and 260.140.46 of Title 10 of
the California Code of Regulations, (2) the terms of any stock option
plan or agreement shall comply with Sections 260.140.41, 260.140.45,
and 260.140.46 of Title 10 of the California Code of Regulations,
and (3) the issuer files a notice of transaction in accordance with
rules adopted by the commissioner within 30 days after the initial
issuance of any security under that plan, accompanied by a filing fee
as prescribed by subdivision (y) of Section 25608.
   (p) An offer or sale of nonredeemable securities to accredited
investors (Section 28031) by a person licensed under the Capital
Access Company Law (Division 3 (commencing with Section 28000) of
Title 4).  All nonredeemable securities shall be evidenced by
certificates that shall have stamped or printed prominently on their
face a legend in a form to be prescribed by rule or order of the
commissioner restricting transfer of the securities in the manner as
the rule or order provides.
  SEC. 27.  Section 28956 of the Corporations Code is amended to
read:
   28956.  If any provision of this division , or the application
thereof to any person or circumstance, is held invalid, the
invalidity shall not affect other provisions or applications of this
law that can be given effect without the invalid provision or
application, and to this end the provisions of this division are
declared to be severable.
  SEC. 28.  Section 8927 of the Education Code is amended to read:
   8927.  (a) The Legislature finds and declares that an evaluation
of the Teenage Pregnancy Prevention Grant Program is both desirable
and necessary and, accordingly, requires all of the following:
   (1) No later than October 1, 2001, each local educational agency
that receives a grant shall submit a report to the superintendent
that includes:
   (A) An assessment of the effectiveness of that local educational
agency in achieving stated goals, including reducing teenage
birthrates, delaying sexual activity, and increasing high school
completion rates.
   (B) Problems encountered in the design and operation of the grant
program plan, including identification of any federal, state, or
local statute or regulation that impedes program implementation.
   (C) Client and practitioner satisfaction.
   (2) The superintendent shall contract for an independent
evaluation of the effectiveness of funds awarded under this chapter
in assisting local educational agencies in implementing the Teenage
Pregnancy Prevention Grant Program.  No later than April 1, 2002, the
superintendent shall submit to the Governor and the Legislature the
results of the evaluation, and a summary of the reports submitted to
the superintendent pursuant to paragraph (1).
   (A) The evaluation shall focus on youth education, health, and
social measures, as appropriate, including, but not limited to,
birthrates, delayed sexual activity, school attendance, academic
performance, dropout rates, pupil grades, birth weights, self-esteem,
child protective services referrals, family functioning, and school
staff and administration participation.
   (B) Additional independent evaluations may be conducted by the
superintendent subject to additional funding being made available for
purposes of this chapter in subsequent fiscal years.
   (b) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
  SEC. 29.  Section 42238.95 of the Education Code is amended to
read:
   42238.95.  (a) The amount per unit of average daily attendance for
pupils in special classes and centers that shall be apportioned to
each county office of education shall be equal to the amount
determined for the district of residence pursuant to Section 42238.9,
increased by the quotient equal to the amount determined pursuant to
paragraph (1) divided by the amount determined pursuant to paragraph
(2).  This subdivision only applies to average daily attendance
served by employees of the county office of education.
   (1) Determine the second principal apportionment average daily
attendance for special education for the county office of education
for the 1996-97 fiscal year, including attendance for excused
absences, divided by the corresponding average daily attendance
excluding attendance for excused absences pursuant to subdivision (b)
of Section 46010 as it read on July 1, 1996, reported pursuant to
Section 41601 for the 1996-97 fiscal year.
   (2) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance for
excused absences, for all of the school districts within the county,
excluding average daily attendance for county office special
education and county community school programs and nonpublic
nonsectarian schools, divided by the corresponding average daily
attendance, excluding attendance for excused absences determined
pursuant to subdivision (b) of Section 46010 as it read on July 1,
1996, and reported pursuant to Section 41601 for the 1996-97 fiscal
year.
   (b) A county office of education shall provide the data required
to perform the calculation specified in paragraph (1) of subdivision
(a) to the Superintendent of Public Instruction in order to be
eligible for the adjustment pursuant to subdivision (a).
  SEC. 30.  Section 44259.3 of the Education Code is amended to read:

   44259.3.  The commission shall review the minimum requirements set
forth in Section 44259 for the preliminary and professional multiple
subject teaching credential and shall recommend their revision as
necessary, during the normal revision cycles, to ensure that teachers
of the elementary grades receive training related to, and have
knowledge of, developmentally appropriate teaching methods for pupils
in kindergarten and grades 1 to 3, inclusive, who may be of the same
grade level but of vastly different developmental levels.  As part
of its review, the commission shall ensure that the requirements link
academic theory regarding child development to instructional methods
designed for use in classrooms of young pupils of varying
developmental levels.  These instructional methods should be designed
to ensure success and progress by all pupils and should especially
help teachers ensure that children who enter school less prepared or
with fewer skills than their classmates meet the expected performance
standards for that grade by the end of the instructional year.  At
the conclusion of its review, the commission shall report to the
Legislature on its recommended revisions, on or before January 1,
2001.
  SEC. 31.  Section 44403 of the Education Code is amended to read:
   44403.  The commission shall, on or before January 1, 2004, submit
to the education policy committees of the Legislature, the
Legislative Analyst, and the Department of Finance a summative report
of the effects of this article.  The report shall include
recommendations regarding the continuation, modification, or
termination of the program.  Subject to an appropriation of
sufficient funds to the commission for this purpose, the commission
shall base its report on an evaluation of the California Mathematics
Initiative for Teaching by an independent contractor selected in
consultation with the office of the Legislative Analyst.  If, in the
judgment of the commission, available funds are insufficient to
contract for an independent evaluation, the commission shall base its
report on information received from school districts and county
superintendents of schools pursuant to subdivision (e) of Section
44402.
  SEC. 32.  Section 44579.4 of the Education Code is amended to read:

   44579.4.  (a) For the 1998-99 school year, a school district may
request the State Board of Education to provide a waiver of
instructional time requirements if both of the following conditions
are met:
   (1) The district provides evidence to the board that the waiver is
necessary only because the repeal of the authority of school
districts to provide staff development during instructional time
results in the district being unable to reasonably meet the
instructional time requirements.
   (2) The school district had a school calendar, or a schoolsite
plan adopted in accordance with law, either of which was approved by
the governing board prior to August 19, 1998, or not more than 30
days after that date, that authorizes the use of instructional days
for staff development.
   (b) A school district that receives a waiver for the 1998-99
school year shall ensure that both of the following occur:
          (1) The combined instructional time and staff development
time provided by the district during the 1998-99 school year pursuant
to the waiver meets or exceeds 180 days or the equivalent number of
annual instructional minutes determined pursuant to Article 8
(commencing with Section 46200) of Chapter 2 of Part 26.
   (2) The actual instructional time provided is at least 172 days or
the equivalent number of annual instructional minutes determined
pursuant to Article 8 (commencing with Section 46200) of Chapter 2 of
Part 26.
   (c) The maximum amount of instructional time that may be waived
may not exceed the number of days the school district had previously
approved as staff development days within the school calendar, or in
a schoolsite plan adopted in accordance with law.
   (d) A school district that receives a waiver for the 1998-99
school year under this section shall only be eligible to receive
staff development funding under this article for each day of staff
development offered under this article that replaces a staff
development day previously authorized under Sections 44670.6,
48645.7, 52022, 52854, or 56242 and utilized during the 1997-98
school year and that was included in a school calendar, or schoolsite
plan adopted in accordance with law, that was approved by the
governing board prior to August 19, 1998, or not more than 30 days
after that date.  For purposes of this subdivision, a staff
development day funded pursuant to the Staff Development Buy-Out
Program in the 1997-98 school year shall be funded in the 1998-99
school year with no requirement that this day replace an additional
staff development day that was previously authorized pursuant to
Sections 44670.6, 48645.7, 52022, 52854, or 56242.
  SEC. 33.  Section 44731 of the Education Code is amended to read:
   44731.  A school district shall certify all of the following to
the State Department of Education as a condition of each applicant
school in the district being eligible to receive funding pursuant to
this chapter:
   (a) Each school maintaining any of grades 4 to 8, inclusive, that
is applying for funding under this chapter has access, for
instructional purposes, to the Internet in its classrooms and has a
sufficient number of up-to-date computers or other devices that
provide Internet access in its classrooms for instructional use.
   (b) The funds received pursuant to this chapter shall be expended
by the eligible schools for the purpose of providing in-service
training to their schoolsite administrators, appropriate
instructional classified employees, and certificated employees who
provide direct instructional services to pupils in grades 4 to 8,
inclusive, in the use of education technology to support the daily
instruction of pupils and the recordkeeping necessary to support that
instruction.
   (c) The funds received pursuant to this chapter shall be expended
for in-service training programs in education technology that meet or
exceed the proficiency standards developed by the Commission on
Teacher Credentialing pursuant to Section 44259.
   (d) Each applicant school has developed an action plan that
provides for a program of in-service training in education technology
for its schoolsite administrators, appropriate instructional
classified employees, and all certificated employees who provide
direct instructional services to pupils in grades 4 to 8, inclusive.
In the action plan, the applicant school shall, to the extent
feasible and appropriate, integrate training in educational
technology with all of the following:
   (1) Staff development days authorized pursuant to Section 44670.6
or 52854.
   (2) Staff development funds available from all state and federal
funding sources.
   (3) Involvement of the parents and guardians of pupils enrolled in
the school district.
   (e) In-service training provided pursuant to this chapter shall be
coordinated and integrated with any other in-service training,
including staff development offered pursuant to Article 7.5
(commencing with Section 44579) of Chapter 3.
  SEC. 34.  Section 51201.5 of the Education Code is amended to read:

   51201.5.  (a) Commencing in the 1992-93 school year, school
districts shall ensure that all pupils in grades 7 to 12, inclusive,
or the equivalent thereof, except as otherwise provided in
subdivision (c), receive AIDS prevention instruction from adequately
trained instructors in appropriate courses.  Each pupil shall receive
the instruction at least once in junior high or middle school and
once in high school.  For purposes of this subdivision, "school
district" includes county boards of education, county superintendents
of schools, and the State Schools for the Handicapped.
   (b) The required AIDS prevention instruction shall accurately
reflect the latest information and recommendations from the United
States Surgeon General, federal Centers for Disease Control, and the
National Academy of Sciences, and shall include the following:
   (1) Information on the nature of AIDS and its effects on the human
body.
   (2) Information on how the human immunodeficiency virus (HIV) is
and is not transmitted, including information on activities that
present the highest risk of HIV infection.
   (3) Discussion of methods to reduce the risk of HIV infection.
This instruction shall emphasize that sexual abstinence, monogamy,
the avoidance of multiple sexual partners, and abstinence from
intravenous drug use are the most effective means for AIDS
prevention, but shall also include statistics based upon the latest
medical information citing the failure and success rates of condoms
and other contraceptives in preventing sexually transmitted HIV
infection and information on other methods that may reduce the risk
of HIV transmission from intravenous drug use.  Nothing in this
section shall be construed to supersede Section 51553.
   (4) Discussion of the public health issues associated with AIDS.
   (5) Information on local resources for HIV testing and medical
care.
   (6) Development of refusal skills to assist pupils in overcoming
peer pressure and using effective decisionmaking skills to avoid
high-risk activities.
   (7) Discussion about societal views on AIDS, including stereotypes
and myths regarding persons with AIDS.  This instruction shall
emphasize compassion for persons suffering from debilitating
handicaps and terminal diseases, such as AIDS.
   (c) AIDS prevention instruction may not be conducted in a manner
that advocates drug use, a particular sexual practice, or sexual
activities.  AIDS prevention instruction shall be consistent with
Section 51553.
   (d) At the beginning of each school year or, for a pupil who
enrolls in a school after the beginning of the school year, at the
time of that pupil's enrollment, the governing board of each school
district, each county board of education, and each county
superintendent of schools, as applicable, shall provide the parent or
guardian of each pupil in grades 7 to 12, inclusive, or the
equivalent thereof, with written notice explaining the purpose of the
AIDS prevention instruction and information stating the parent's or
guardian's right to request a copy of this section and Section 51553,
related to AIDS prevention instruction.  The governing board of each
school district, each county board of education, and each county
superintendent of schools, as applicable, shall keep on file copies
of this section and Section 51553.  The Superintendent of Public
Instruction shall provide the parent or guardian of each pupil in
grades 7 to 12, inclusive, or the equivalent thereof, in the State
Schools for the Handicapped with written notice explaining the
purpose of the AIDS prevention instruction.
   (1) The notice shall specify that any parent or guardian may
request that his or her child or ward not receive instruction in AIDS
prevention.  No pupil shall attend the AIDS prevention instruction
if a written request that he or she not attend has been received by
the school.  For the governing boards of school districts, this
notification shall accompany the reporting of rights and
responsibilities required by Section 48980.
   (2) If authorized by the school district governing board, a school
district may require parental consent prior to providing instruction
on AIDS prevention to any minor pupil.
   (3) At any time that an outside organization or guest speaker is
scheduled to deliver AIDS prevention instruction, or anytime an
assembly is held to deliver AIDS prevention instruction, notification
shall be sent to the  pupils' parents or legal guardians through
regular United States mail, or any other method that the school
district, county board of education, or county superintendent of
schools, as applicable, commonly uses to communicate individually in
writing to all parents or guardians, at the beginning of the school
year or, with respect to a pupil who enrolls in a school after the
beginning of the school year, at the time of that pupil's enrollment.
  If arrangements for this instruction are made after these
occurrences, notice shall be mailed, or provided by the alternative
method of notification otherwise commonly used, no fewer than 10, and
no more than 15, days before the instruction is delivered.
Notification sent pursuant to this paragraph shall include the date
of the instruction, the name of the organization or affiliation of
each guest speaker, and information stating the parent's or guardian'
s right to request a copy of this section and Section 51553, related
to AIDS prevention instruction.  The governing board of each school
district, each county board of education, and each county
superintendent of schools, as applicable, shall keep on file copies
of this section and Section 51553.
   (e)  All school districts shall ensure all of the following:
   (1) That instructional materials related to this instruction are
available.
   (2) That these instructional materials are appropriate for use
with pupils of various ages and learning abilities.
   (3) That these instructional materials may be used effectively
with pupils from a variety of ethnic, cultural, and linguistic
backgrounds, and pupils with special needs.
   (f) A pupil shall not be subject to disciplinary action, academic
penalty, or other sanction if the pupil's parent or guardian declines
to permit the pupil to receive the instruction described in
subdivision (a) and the pupil does not receive the instruction.
   (g) While the instruction described in subdivision (a) is being
delivered, an alternative educational activity shall be made
available to pupils whose parents or guardians have requested that
they not receive the instruction described in subdivision (a).
  SEC. 35.  Section 51554 of the Education Code is amended to read:
   51554.  (a) Unless a pupil's parent or guardian has been sent
written notification through regular United States mail, or any other
method that the school district, county board of education, or
county superintendent of schools, as applicable, commonly uses to
communicate individually in writing to all parents or guardians, at
the beginning of the school year or, with respect to a pupil who
enrolls in a school after the beginning of the school year, at the
time of that pupil's enrollment, a pupil shall not receive
instruction on sexually transmitted diseases, AIDS, human sexuality,
or family life that is delivered by an outside organization or guest
speakers brought in specifically to provide that instruction, whether
the guest speakers are brought in to lecture, distribute
information, show a videotape, act out, conduct an activity involving
pupil participation, or provide audio material on these subjects.
Notification sent pursuant to this section shall include the date of
the instruction, the name of the organization or affiliation of each
guest speaker, and information stating the parent's or guardian's
right to request a copy of Sections 51201.5 and 51553, related to
AIDS prevention instruction.  The governing board of each school
district, each county board of education, and each county
superintendent of schools, as applicable, shall keep on file copies
of this section and Section 51553.  If arrangements for this
instruction are made after the written notice required by this
section is sent, notice of instruction to be delivered by outside
organizations or guest speakers shall be mailed, or provided by the
alternative method of notification otherwise commonly used, no fewer
than 10, and no more than 15, days before the instruction is
delivered.  For purposes of this subdivision, "instruction" includes
instruction delivered in an individual classroom, before combined
classes, or in assemblies.
   (b) In the case of instruction that involves presentations on
sexually transmitted diseases, AIDS, human sexuality, or family life
delivered in an assembly, a pupil shall not receive that instruction
if a teacher employed by the school district or administrator
employed by the school district delivers that instruction unless the
pupil's parent or guardian is notified through regular United States
mail, or any other method that the school district, county board of
education, or county superintendent of schools, as applicable,
commonly uses to communicate individually in writing to all parents
or guardians, about the instruction at the beginning of the school
year or, with respect to a pupil who enrolls in a school after the
beginning of the school year, at the time of that pupil's enrollment.
  If arrangements for this instruction are made after these
occurrences, notice shall be provided no fewer than 10, and no more
than 15, days before the instruction is delivered.  For purposes of
this subdivision, "instruction" includes oral presentations, visual
presentations, and activities.
   (c) A pupil shall not be subject to a disciplinary action,
academic penalty, or other sanction if the pupil's parent or guardian
declines to permit the pupil to receive the instruction described in
subdivision (a) or (b) and the pupil does not receive the
instruction.
   (d) During the period of time instruction described in subdivision
(a) or (b) is being delivered, an alternative educational activity
shall be made available to pupils whose parents or guardians have
requested that they not receive the instruction described in
subdivision (a) or (b).
  SEC. 36.  Section 51555 of the Education Code is amended to read:
   51555.  Before a pupil who is enrolled in kindergarten or any of
grades 1 to 6, inclusive, receives instruction on sexually
transmitted diseases, AIDS, human sexuality, or family life, the
governing board of each school district, each county board of
education, and each county superintendent of schools, as applicable,
shall provide the parent or guardian of each pupil with written
notice explaining that the instruction will be given and information
stating the parent's or guardian's right to request a copy of
Sections 51201.5 and 51553, related to AIDS prevention instruction.
The governing board of each school district, each county board of
education, and each county superintendent of schools, as applicable,
shall keep on file copies of this section and Section 51553.  Sending
the required notice through the regular United States mail, or by
any other method that the school district, county board of education,
or county superintendent of schools, as applicable, commonly uses to
communicate individually in writing to all parents or guardians,
meets the notification requirement of this paragraph.
  SEC. 37.  Section 51871 of the Education Code is amended to read:
   51871.  (a) The California Technology Assistance Project shall be
established by the State Department of Education to administer a
regionalized network of technical assistance to schools and school
districts on the implementation of education technology as set forth
in policies of the State Board of Education.  The California
Technology Assistance Project shall be composed of regional consortia
that will work collaboratively with school districts and county
offices of education in order to meet locally defined
technology-based needs, as identified in the certified technology
plans for their client school districts, including, but not
necessarily limited to, all of the following areas:
   (1) Staff development.
   (2) Learning resources.
   (3) Hardware.
   (4) Telecommunications infrastructure.
   (5) Technical assistance to school districts in developing a
support system to operate and maintain an education technology
infrastructure, including improving pupil recordkeeping and tracking
related to pupil instruction.
   (6) Coordination with other federal, state, and local programs.
   (7) Funding.
   (b) The State Board of Education shall award grants to fund a
school district or county office of education in each region of the
California Technology Assistance Project to act as the lead agency to
administer the services of that region.  The term of a grant awarded
pursuant to this section may not exceed three years.  Grant funding
may be awarded and received for subsequent terms of three years as
provided in this section.  The lead agency shall be chosen through a
process based on all of the following:
   (1) Knowledge of technology.
   (2) Technology planning and technical assistance.
   (3) A proven record of success in providing staff development in
technology and curriculum integration.
   (4) A demonstrated ability to work collaboratively with school
districts, county offices of education, and businesses in the region.

   (5) The ability to deliver services specified in this article to
all school districts and county offices of education in its region.
   (6) The degree of support for the application by school districts
and county offices of education in the region.
   (7) Review of the annual report of the services provided by the
lead agency submitted to the State Board of Education and school
districts and county offices of education within the California
Technology Assistance Project region.  School districts and county
offices of education within a California Technology Assistance
Project region shall have the opportunity to comment on the report.
   (c) To receive funding for the second and third year of a grant
awarded pursuant to subdivision (b), a lead agency shall submit an
annual report to the State Board of Education for approval that
describes the services provided, the persons served, and the funds
expended for those services in the prior year.  School districts and
county offices of education within the California Technology
Assistance Project region shall have an opportunity to comment on the
report.  The State Department of Education shall release grant
funding for a second or third year only after the annual report has
been approved by the State Board of Education.
   (d) Funding to support the regional education technology services
provided by the California Technology Assistance Project shall be
provided through the annual Budget Act.  Funding of the regional lead
agencies shall be approved by the State Board of Education based on
adopted guidelines.
  SEC. 38.  Section 52122 of the Education Code is amended to read:
   52122.  (a) Except as otherwise provided by Section 52123, any
school district that maintains any kindergarten or any of grades 1 to
3, inclusive, may apply to the Superintendent of Public Instruction
for an apportionment to implement a class size reduction program in
that school district in kindergarten and any of the grades designated
in this chapter.
   (b) An application submitted pursuant to this chapter shall
identify both of the following:
   (1) Each class that will participate in the Class Size Reduction
Program.
   (2) For each class that will participate in the Class Size
Reduction Program, whether that class will operate under Option One
or Option Two:
   (A) (i) Option One:  A school district shall provide a reduced
class size for all pupils in each classroom for the full regular
schoolday in each grade level for which funding is claimed.  For the
purposes of this chapter, "full regular schoolday" means a
substantial majority of the instructional minutes per day, but shall
permit limited periods of time during which pupils are brought
together for a particular phase of education in groups that are
larger than 20 pupils per certificated teacher.  It is the intent of
the Legislature that those limited periods of time be kept to a
minimum and that instruction in reading and mathematics not be
delivered during those limited periods of time.  For the purposes of
this subparagraph, "class" is defined in the same manner as provided
in the regulations adopted by the Superintendent of Public
Instruction prior to July 1, 1996, pursuant to Sections 41376 and
41378 (subdivision (a) of Section 15103 of Title 5 of the California
Code of Regulations).
   (ii) The purpose of the Class Size Reduction Program is to ensure
that children in public school in kindergarten and grades 1 to 3,
inclusive, receive instruction in classrooms where there are not more
than 20 pupils.  In order to qualify for funding pursuant to this
chapter, each class in the Class Size Reduction Program shall be
maintained with an annual average class size of not more than 20
pupils for the instructional time that qualifies the class for
funding pursuant to this chapter.  Nothing in this chapter shall be
construed to prohibit the class size from exceeding 20 pupils on any
particular day, provided that the average class size for the school
year does not exceed 20.
   (B) (i) Option Two:  A school district shall provide a reduced
class size for all pupils in each classroom for at least one-half of
the instructional minutes offered per day in each grade level for
which funding is claimed.  School districts selecting this option
shall primarily devote those instructional minutes to the subject
areas of reading and mathematics.  For the purposes of this
subparagraph, "class" is defined in the same manner as provided in
the regulations adopted by the Superintendent of Public Instruction
prior to July 1, 1996, pursuant to Sections 41376 and 41378
(subdivision (a) of Section 15103 of Title 5 of the California Code
of Regulations).
   (ii) The purpose of the Class Size Reduction Program is to ensure
that children in public school in kindergarten and grades 1 to 3,
inclusive, receive instruction in classrooms where there are not more
than 20 pupils.  In order to qualify for funding pursuant to this
chapter, each class in the Class Size Reduction Program shall be
maintained with an annual average class size of not more than 20
pupils for the instructional time that qualifies the class for
funding pursuant to this chapter.  Nothing in this chapter shall be
construed to prohibit the class size from exceeding 20 pupils on any
particular day, provided that the average class size for the school
year does not exceed 20.
   (c) A school district that intends to implement a Class Size
Reduction Program for the 1996-97 school year shall submit an
application for funds pursuant to this chapter to the Superintendent
of Public Instruction not later than November 1, 1996.  To receive
the total amount of funding in the 1996-97 school year for which the
school district is eligible pursuant to Section 52126, a school
district shall implement the Class Size Reduction Program by February
16, 1997, within the meaning of paragraph (2) of subdivision (b).
   (d) A school district that intends to implement or continue to
implement a Class Size Reduction Program for the 1997-98 school year
and any subsequent school year shall submit an application for
funding pursuant to this chapter to the Superintendent of Public
Instruction not later than 90 days after the annual Budget Act is
chaptered, unless otherwise specified in regulations adopted by the
State Board of Education.
   (e) For the 1997-98 school year, a school district that is either
implementing or expanding a class size reduction program pursuant to
this chapter may receive funding pursuant to this chapter even if the
new classes for which funding is sought are not implemented at the
beginning of the 1997-98 school year, provided that, for each new
class in the Class Size Reduction Program, all of the following
criteria are met:
   (1) The teacher for each new class is hired and placed on the
school district's payroll by November 1, 1997.
   (2) Each teacher for a new class has begun to receive the training
required by this chapter on or before February 16, 1998.
   (3) All other requirements of this chapter are satisfied by
February 16, 1998, and continue to be satisfied for the remainder of
the 1997-98 school year.
   (f) For the 1997-98 school year, the number of new classes in the
Class Size Reduction Program is the number of classes satisfying the
requirements of this chapter minus the number of classes funded in
the Class Size Reduction Program pursuant to this chapter in the
1996-97 school year.
   (g) Any school district that chooses to reduce class size through
the use of an early-late instructional program is ineligible to also
use Section 46205, relating to the computation of instructional time
for purposes of the Incentive for Longer Instructional Day and Year,
in any grade level for which class size reduction funding is received
pursuant to this chapter; provided, however, that any school
district that operated under Section 46205 prior to July 1, 1996, may
receive class size reduction funding pursuant to Option One in any
grade level for which class size reduction funding would otherwise be
received pursuant to Option One.
  SEC. 39.  Section 54745 of the Education Code is amended to read:
   54745.  (a) In the administration of the Cal-SAFE program, the
following provisions shall apply:
   (1) Participation by a school district or county superintendent of
schools in the Cal-SAFE program is voluntary.
   (2) The governing board of a school district or county
superintendent of schools may individually, or jointly as a
consortium of governing boards of school districts or county
superintendents of schools, or both, submit an application to the
State Department of Education in the manner, form, and date specified
by the department to establish and maintain a Cal-SAFE program.
   (3) A school district or county superintendent of schools, alone
or as a member of a consortium of school districts or county
superintendents of schools, or both, approved to implement the
Cal-SAFE program shall be funded as one program to be operated at one
or multiple sites depending upon the need within the service area.
       (4) Notwithstanding any other provision of law, a school
district or county superintendent of schools operating a School Age
Parent and Infant Development Program pursuant to Article 17
(commencing with Section 8390) of Chapter 2 of Part 6, a Pregnant
Minors Program pursuant to Chapter 6 (commencing with Section 8900)
of Part 6 and Section 2551.3, or a Pregnant and Lactating Students
Program pursuant to Sections 49553 and 49559, as those provisions
existed prior to the operative date of the act that adds this
article, or any combination thereof, that chooses to participate in
the Cal-SAFE program shall have priority for Cal-SAFE program funding
for an amount up to the dollar amount provided under those
provisions in the fiscal year prior to participation in the Cal-SAFE
program, provided that an application is submitted and approved.
   (5) If a school district or county superintendent of schools
operating a School Age Parent and Infant Development Program, a
Pregnant Minors Program, or a Pregnant and Lactating Students
Program, or any combination thereof, chooses not to participate in
the Cal-SAFE program, the funding it would have received for the
operation of those programs shall be redirected to the Cal-SAFE
program and the school district or county superintendent of schools
may apply in a subsequent school year to operate a Cal-SAFE program.

   (6) A school district or county superintendent of schools that
terminates its Cal-SAFE program may reapply to establish a Cal-SAFE
program.
   (7) In order to continue implementation of the Cal-SAFE program
beyond the initial three years of funding, each funded agency shall
be reviewed by the department to determine progress towards achieving
the goals set forth in Section 54742.  Thereafter, funded agencies
shall be reviewed and reauthorized every five years based upon a
process determined by the department to continue implementation of a
Cal-SAFE program.
   (b) All of the following requirements shall apply to an
application for the Cal-SAFE program:
   (1) The governing board of a participating local education agency
shall adopt a policy or resolution declaring its commitment to
provide a comprehensive, continuous, community-linked program for
pregnant and parenting pupils and their children that reflects the
cultural and linguistic diversity of the community.
   (2) The local education agency shall provide assurance for
participation in the development of the County Service Coordination
Plan as described in Section 54744.
   (3) A school district or county superintendent of schools shall
agree to participate in the data collection and evaluation of the
Cal-SAFE program.
   (c) To implement a Cal-SAFE program, the funded school district,
county superintendent of schools, or consortium of school districts
or county superintendents of schools, or both, shall meet all of the
following criteria:
   (1) Be in compliance with Title IX of the Education Amendments of
1972 Regulations.
   (2) Ensure that enrolled pupils retain their right to participate
in the regular school or educational alternative programs.  School
placement and instructional strategies shall be based upon the needs
and styles of learning of the individual pupils.  The classroom
setting shall be the preferred instructional strategy unless an
alternative is necessary to meet the needs of the individual parent,
child, or both.
   (3) Enroll pupils into the Cal-SAFE program on an open entry and
open exit basis.
   (4) Provide a quality education program to pupils in a supportive
and accommodating learning environment with appropriate classroom
strategies to ensure school access and academic credit for all work
completed.
   (5) Provide a parenting education and life skills class to
enrolled pupils.
   (6) Make maximum utilization of available programs and facilities
to serve pregnant and parenting pupils and their children.
   (7) Provide a quality child care and development program for the
children of enrolled teen parents located on or near the schoolsite.

   (8) Make maximum utilization of its local school food service
program.
   (9) Provide special school nutrition supplements, as defined by
subdivision (b) of Section 49553, to pregnant and lactating pupils.
   (10) Enter into formal partnership agreements, as necessary, with
community-based organizations and other governmental agencies to
assist pupils in accessing support services.
   (11) Provide staff development and community outreach in order to
establish a positive learning environment and school policies
supportive of pregnant and parenting pupils' academic achievement and
to promote the healthy development of their children.
   (12) Maintain an annual program budget and expenditure report to
document that funds are expended pursuant to Section 54749.
   (13) Assess no fees to enrolled pupils or their families for
services provided through the Cal-SAFE program.
   (14) Establish and maintain a data base in the manner and form
prescribed by the State Department of Education for purposes of
program evaluation.
  SEC. 40.  Section 54748 of the Education Code is amended to read:
   54748.  The duties of the State Department of Education include
all of the following:
   (a) Provision of technical assistance, focused upon transition
into the Cal-SAFE program, to school districts and county
superintendents of schools currently operating a School Age Parent
and Infant Development Program, a Pregnant Minors Program, or a
Pregnant and Lactating Students Program, or any combination thereof.

   (b) Provision of technical assistance to school districts and
county superintendents of schools that do not currently operate a
School Age Parent and Infant Development Program, a Pregnant Minors
Program, or a Pregnant and Lactating Students Program as defined by
subdivision (a) of Section 54745.
   (c) Identification and sharing of information on best practices
across program sites.
   (d) Development of benchmarks to determine to what degree pupils
and children enrolled in the Cal-SAFE program attain the program
goals.
   (e) Consultation with local education agency representatives and
others, as appropriate, to develop strategies for implementation of
the Cal-SAFE program.
   (f) Determination of areas in the state where there are pupils who
are most in need or pupils who are least likely to access services
on their own if there are not enough resources to serve all eligible
pupils.
   (g) Development of an application process and approval of local
education agencies to implement a Cal-SAFE program.
   (h) Development of operating guidelines for implementing an
effective Cal-SAFE program.
   (i) Development of guidelines for fiscal reporting.
   (j) Coordination with other state agencies that administer teen
pregnancy prevention and intervention programs.
   (k) Development of procedures to conduct program evaluation and
monitoring, as appropriate.
   (l) Commencing March 1, 2004, and every five years thereafter,
preparation and submission of a report to the Joint Legislative
Budget Committee and appropriate policy and fiscal committees of the
Legislature.  The report shall include data, analysis of data, and an
evaluation of the Cal-SAFE program.
  SEC. 41.  Section 54761.3 of the Education Code is amended to read:

   54761.3.  Notwithstanding any other provision of law, a school
district that chose to designate home-to-school transportation as the
program to which a supplemental grant was to be added, thereby
increasing its home-to-school transportation allowance, may, for the
1996-97 fiscal year, transfer into another categorical education
program account set forth in clause (i) of subparagraph (B) of
paragraph (1) of subdivision (a) of Section 54761 the amount by which
the school district's home-to-school transportation allowance for
the 1996-97 fiscal year exceeded its approved home-to-school
transportation costs for the 1995-96 fiscal year.  The amount
transferred pursuant to this section may not exceed the amount of
supplemental grant funding that was added to the home-to-school
transportation allowance of the school district.  In a manner
prescribed by the Superintendent of Public Instruction, eligible
school districts shall request, no later than February 1, 1999, that
the Superintendent of Public Instruction initiate the transfer.  The
request shall designate the program or programs to which the
supplemental grant funding is to be transferred.  The Superintendent
of Public Instruction shall adjust program allocations as requested.

  SEC. 42.  Section 60603 of the Education Code is amended to read:
   60603.  As used in this chapter:
   (a) "Achievement test" means any standardized test that measures
the level of performance that a pupil has achieved in the core
curriculum areas.
   (b) "Assessment of applied academic skills" means a form of
assessment that requires pupils to demonstrate their knowledge of,
and ability to apply, academic knowledge and skills in order to solve
problems and communicate.  It may include, but is not limited to,
writing an essay response to a question, conducting an experiment, or
constructing a diagram or model.  An assessment of applied academic
skills may not include assessments of personal behavioral standards
or skills, including, but not limited to, honesty, sociability,
ethics, or self-esteem.
   (c) "Basic academic skills" means those skills in the subject
areas of reading, spelling, written expression, and mathematics that
provide the necessary foundation for mastery of more complex
intellectual abilities, including the synthesis and application of
knowledge.
   (d) "Content standards" means the specific academic knowledge,
skills, and abilities that all public schools in this state are
expected to teach and all pupils expected to learn in each of the
core curriculum areas, at each grade level tested.
   (e) "Core curriculum areas" means the areas of reading, writing,
mathematics, history-social science, and science.
   (f) "Direct writing assessment" means an assessment of applied
academic skills that requires pupils to use written expression to
demonstrate writing skills, including writing mechanics, grammar,
punctuation, and spelling.
   (g) "End of course exam" means a comprehensive and challenging
assessment of pupil achievement in a particular subject area or
discipline such as the Golden State Exams.
   (h) "Performance standards" are standards that define various
levels of competence at each grade level in each of the curriculum
areas for which content standards are established.  Performance
standards gauge the degree to which a pupil has met the content
standards and the degree to which a school or school district has met
the content standards.
   (i) "Publisher" means a commercial publisher or any other public
or private entity, other than the State Department of Education,
which is able to provide tests or test items that meet the
requirements of this chapter.
   (j) "Statewide pupil assessment program" means the systematic
achievement testing of pupils in grades 2 to 11, inclusive, pursuant
to the standardized testing and reporting program under Article 4
(commencing with Section 60640) and the assessment of basic academic
skills and applied academic skills, administered to pupils in grade
levels specified in subdivision (c) of Section 60605, required by
this chapter in all schools within each school district by means of
tests designated by the State Board of Education.
  SEC. 43.  Section 60640 of the Education Code is amended to read:
   60640.  (a) There is hereby established the Standardized Testing
and Reporting Program, to be known as the STAR Program.
   (b) Commencing in the 1997-98 fiscal year and each fiscal year
thereafter, and from the funds available for that purpose, each
school district, charter school, and county office of education shall
administer to each of its pupils in grades 2 to 11, inclusive,
before May 15, the achievement test designated by the State Board of
Education pursuant to Section 60642.
   (c) The publisher and the school district shall provide two makeup
days for the testing of previously absent pupils no later than May
25.
   (d) The governing board of the school district may administer
achievement tests in kindergarten, and grade 1 or 12, or both, as it
deems appropriate.
   (e) Individuals with exceptional needs who have an explicit
provision in their individualized education program that exempts them
from the testing requirement of subdivision (b) shall be so exempt.

   (f) At the school district's option, pupils of limited English
proficiency who are enrolled in any of grades 2 to 11, inclusive, may
take a second achievement test in their primary language.  Primary
language tests administered pursuant to this subdivision and
subdivision (g) shall be subject to the requirements of subdivisions
(b), (c), (d), and (e) of Section 60641.  These primary language
tests shall produce individual pupil scores that are valid and
reliable.  Notwithstanding any other provision of law, the State
Board of Education shall designate for use, as part of this program,
a single primary language test in each language for which such a test
is available for grades 2 to 11, inclusive, no later than November
14, 1998, pursuant to the process used for designation of the
assessment chosen in the 1997-98 fiscal year, as specified in Section
60642 and 60643, as applicable.
   (g) In addition to the test required by subdivision (b), pupils of
limited English proficiency who are enrolled in any of grades 2 to
11, inclusive, shall be required to take a test in their primary
language if such a test is available, if less than 12 months has
elapsed after their initial enrollment in any public school in the
state.
   (h) The Superintendent of Public Instruction shall apportion funds
to enable school districts to meet the requirements of subdivisions
(b), (f), and (g).  The State Board of Education shall establish the
amount of funding to be apportioned.  The amount to be apportioned
shall be up to eight dollars ($8) per test administered to a pupil in
grades 2 to 11, inclusive.
   (i) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation for the apportionments made pursuant to subdivision (g)
shall be deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202, for the
applicable fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIIIB," as defined
in subdivision (e) of Section 41202, for that fiscal year.
   (j) As a condition to receiving an apportionment pursuant to
subdivision (h), a school district shall report to the superintendent
all of the following:
   (1) The number of pupils enrolled in the school district in grades
2 to 11, inclusive.
   (2) The number of pupils to whom an achievement test was
administered in grades 2 to 11, inclusive, in the school district.
   (3) The number of pupils in paragraph (1) who were exempted from
the test pursuant to subdivision (e) of Section 60640.
   (4) The number of pupils in paragraph (1) who were exempted from
the test at the request of their parents or guardians.
  SEC. 44.  Section 69621 of the Education Code is amended to read:
   69621.  For purposes of this article, the following definitions
apply:
   (a) "Child Development Permit" means a permit issued by the
Commission on Teacher Credentialing that authorizes an individual to
teach, instruct, or supervise in a licensed child care and
development program.
   (b) "Licensed children's center" means a public school
district-based, nonprofit community-based, or private proprietary
program licensed by the State Department of Social Services under the
health and safety requirements of Title 22 of the California Code of
Regulations or administered by the State Department of Education
under Title 5 of the California Code of Regulations.  Licensed
children's centers include federally subsidized, state-subsidized,
and nonsubsidized child care and development programs serving
children part day or full day.
  SEC. 45.  Section 89010 of the Education Code is amended to read:
   89010.  (a) Notwithstanding Article 1 (commencing with Section
11000) of Chapter 1 of Part 1 of, Article 2 (commencing with Section
14660) of Chapter 2 of Part 5.5 of, and Part 11 (commencing with
Section 15850) of, Division 3 of Title 2 of the Government Code, or
any other provision of law to the contrary, the trustees may sell
improvements located on the land at the California State University,
Monterey Bay campus that was transferred to the trustees from the
United States of America and used for housing purposes, in
circumstances in which the underlying ownership in the land remains
with the trustees.  The trustees may exercise this authority without
the prior approval of any other state department or agency.
   (b) Moneys received by the trustees from the sale of improvements
authorized in this section shall be deposited in local trust
accounts.  Moneys so deposited may be invested in accordance with
state law and, notwithstanding Section 13340 of the Government Code,
are continuously appropriated without regard to fiscal years for the
purposes of building, maintaining, and funding a campus of the
California State University at Monterey Bay through expenditures for
improvements to the campus, funding of scholarships, and other
academic purposes of the campus.
  SEC. 46.  Section 10262 of the Elections Code is amended to read:
   10262.  The governing body of the city shall meet at its usual
place of meeting on the second Tuesday after the election to canvass
the returns and to install the newly elected officers.  The body
shall declare elected the persons for whom the highest number of
votes were cast for each office.  Upon the completion of the canvass
and before installing the new officers, the body shall pass a
resolution reciting the fact of the election and the other matters
that are enumerated in Section 10264.
  SEC. 47.  Section 15112 of the Elections Code is amended to read:
   15112.  When elections are consolidated pursuant to Division 10
(commencing with Section 10000), and only one form of ballot is used
at the consolidated election, the ballots cast by absent voters shall
be counted only in connection with elections to which absent voter
privileges have been extended by law.
   Whenever the period of time within which absent voters' ballots
shall be received by the elections official in order to be counted,
as provided for any election by this code or any other law of this
state, is different from that period of time provided for another
election, and the elections are consolidated and only one form of
ballot used for both elections, all absent voters' ballots issued for
the consolidated election may be counted for both elections if
received by the elections official within whichever period of time is
longer.
  SEC. 48.  Section 15151 of the Elections Code is amended to read:
   15151.  (a) The elections official shall transmit the semifinal
official results to the Secretary of State in the manner and
according to the schedule prescribed by the Secretary of State prior
to each election, for the following:
   (1) All candidates voted for statewide office.
   (2) All candidates voted for the following offices:
   (A) Member of the Assembly.
   (B) Member of the Senate.
   (C) Member of the United States House of Representatives.
   (D) Member of the State Board of Equalization.
   (E) Justice of the Court of Appeal.
   (3) All persons voted for at the presidential primary or for
electors of President and Vice President of the United States.
   (4) Statewide ballot measures.
   (b) The elections official shall transmit the results to the
Secretary of State at intervals no greater than two hours, following
commencement of the semifinal official canvass.
  SEC. 49.  Section 4252 of the Family Code is amended to read:
   4252.  (a) One or more child support commissioners shall be
appointed by the superior court to perform the duties specified in
Section 4251.  The child support commissioners' first priority always
shall be to hear Title IV-D child support cases.  The child support
commissioners shall specialize in hearing child support cases, and
their primary responsibility shall be to hear Title IV-D child
support cases.  Child support commissioner positions shall not be
subject to the limitation on other commissioner positions imposed
upon the counties by Article 13 (commencing with Section 70140) of
Chapter 5 of Title 8 of the Government Code.  The number of child
support commissioner positions allotted to each superior court shall
be determined by the Judicial Council in accordance with caseload
standards developed pursuant to paragraph (3) of subdivision (b),
subject to appropriations in the annual Budget Act.
   (b) The Judicial Council shall do all of the following:
   (1) Establish minimum qualifications for child support
commissioners.
   (2) Establish minimum educational and training requirements for
child support commissioners and other court personnel that are
assigned to Title IV-D child support cases.  Training programs shall
include both federal and state laws concerning child support and
related issues.
   (3) Establish caseload, case processing, and staffing standards
for child support commissioners on or before April 1, 1997, which
shall set forth the maximum number of cases that each child support
commissioner can process.  These standards shall be reviewed and, if
appropriate, revised by the Judicial Council every two years.
   (4) Adopt uniform rules of court and forms for use in Title IV-D
child support cases.
   (5) Offer technical assistance to counties regarding issues
relating to implementation and operation of the child support
commissioner system, including assistance related to funding,
staffing, and the sharing of resources between counties.
   (6) Establish procedures for the distribution of funding to the
courts for child support commissioners, family law facilitators
pursuant to Division 14 (commencing with Section 10000), and related
allowable costs.
   (7) Adopt rules that define the exceptional circumstances in which
judges may hear Title IV-D child support matters as provided in
subdivision (a) of Section 4251.
   (8) Convene a workgroup, including representatives of the State
Department of Social Services, county district attorneys, child
support commissioners, child support advocates, family law
facilitators, attorneys engaging in the private practice of family
law, custodial and noncustodial parents' organizations, and staff of
the Assembly and Senate Judiciary Committees, to advise the Judicial
Council in establishing criteria to evaluate the success and identify
any failures of the child support commissioner system.  The
workgroup shall also provide advice on how to establish successful
outcomes for the child support commissioner system created pursuant
to this article.  The Judicial Council shall conduct an evaluation
and report the results of the evaluation and its recommendations to
the Legislature no later than February 1, 2000.  At a minimum, the
evaluation shall examine the ability of the child support
commissioner system to achieve the goals set forth in Section 4250.
The report shall include a fiscal impact statement estimating the
costs of implementing the recommendations.
   (9) Undertake other actions as appropriate to ensure the
successful implementation and operation of child support
commissioners in the counties.
  SEC. 50.  Section 4351 of the Family Code is amended to read:
   4351.  (a) In any proceeding where the court has entered an order
pursuant to Section 4350, the court may also refer the matter of
enforcement of the spousal support order to the district attorney.
The district attorney may bring those enforcement proceedings as the
district attorney, in the district attorney's discretion, determines
to be appropriate.
   (b) Notwithstanding subdivision (a), in any case in which the
district attorney is required to appear on behalf of a welfare
recipient in a proceeding to enforce an order requiring payment of
child support, the district attorney shall also enforce any order
requiring payment to the welfare recipient of spousal support that is
in arrears.
   (c) Nothing in this section shall be construed to prohibit the
district attorney from bringing an action or initiating process to
enforce or punish the failure to obey an order for spousal support
under any provision of law that empowers the district attorney to
bring an action or initiate a process, whether or not there has been
a referral by the court pursuant to this chapter.
   (d) Any notice from the district attorney requesting a meeting
with the support obligor for any purpose authorized under this part
shall contain a statement advising the support obligor of his or her
right to have an attorney present at the meeting.
  SEC. 51.  Section 4901 of the Family Code is amended to read:
   4901.  The following definitions apply to this chapter:
   (a) "Child" means an individual, whether over or under the age of
majority, who is, or is alleged to be, owed a duty of support by the
individual's parent or who is, or is alleged to be, the beneficiary
of a support order directed to the parent.
   (b) "Child support order" means a support order for a child,
including a child who has attained the age of majority under the law
of the issuing state.
   (c) "Duty of support" means an obligation imposed or imposable by
law to provide support for a child, spouse, or former spouse,
including an unsatisfied obligation to provide support.
   (d) "Home state" means the state in which a child lived with a
parent or a person acting as parent for at least six consecutive
months immediately preceding the time of filing of a petition or
comparable pleading for support and, if a child is less than six
months old, the state in which the child lived from birth with any of
them.  A period of temporary absence of any of them is counted as
part of the six-month or other period.
   (e) "Income" includes earnings or other periodic entitlements to
money from any source and any other property subject to withholding
for support under the laws of this state.
   (f) "Income-withholding order" means an earnings assignment order
for support, as defined in Section 5208, or any other order or other
legal process directed to an obligor's employer, or other debtor, to
withhold from the income
of the obligor an amount owed for support.
   (g) "Initiating state" means a state from which a proceeding is
forwarded, or in which a proceeding is filed for forwarding, to a
responding state under this chapter or a law or procedure
substantially similar to this chapter, the Uniform Reciprocal
Enforcement of Support Act, or the Revised Uniform Reciprocal
Enforcement of Support Act.
   (h) "Initiating tribunal" means the authorized tribunal in an
initiating state.
   (i) "Issuing state" means the state in which a tribunal issues a
support order or renders a judgment determining parentage.
   (j) "Issuing tribunal" means the tribunal that issues a support
order or renders a judgment determining parentage.
   (k) "Law" includes decisional and statutory law and rules and
regulations having the force of law.
   (l) "Obligee" means any of the following:
   (1) An individual to whom a duty of support is, or is alleged to
be, owed or in whose favor a support order has been issued or a
judgment determining parentage has been rendered.
   (2) A state or political subdivision to which the rights under a
duty of support or support order have been assigned or which has
independent claims based on its provision of financial assistance to
an individual obligee.
   (3) An individual seeking a judgment determining parentage of the
individual's child.
   (m) "Obligor" means an individual, or the estate of a decedent,
who satisfies any of the following criteria:
   (1) He or she owes or is alleged to owe a duty of support.
   (2) He or she is alleged, but has not been adjudicated to be, a
parent of a child.
   (3) He or she is liable under a support order.
   (n) "Register" means to file a support order or judgment
determining parentage in the superior court in any county in which
enforcement of the order is sought.
   (o) "Registering tribunal" means a tribunal in which a support
order is registered.
   (p) "Responding state" means a state in which a proceeding is
filed or to which a proceeding is forwarded for filing from an
initiating state under this chapter or a law or procedure
substantially similar to this chapter, the Uniform Reciprocal
Enforcement of Support Act, or the Revised Uniform Reciprocal
Enforcement of Support Act.
   (q) "Responding tribunal" means the authorized tribunal in a
responding state.
   (r) "Spousal support order" means a support order for a spouse or
former spouse of the obligor.
   (s) "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States.  The term "state" also includes both of the following:

   (1) An Indian tribe.
   (2) A foreign jurisdiction that has enacted a law or established
procedures for issuance and enforcement of support orders which are
substantially similar to the procedures under this chapter, the
Uniform Reciprocal Enforcement of Support Act, or the Revised Uniform
Reciprocal Enforcement of Support Act.
   (t) "Support enforcement agency" means a public official or agency
authorized to seek any of the following:
   (1) Enforcement of support orders or laws relating to the duty of
support.
   (2) Establishment or modification of child support.
   (3) Determination of parentage.
   (4) Location of obligors or their assets.
   (u) "Support order" means a judgment, decree, or order, whether
temporary, final, or subject to modification, for the benefit of a
child, spouse, or former spouse, that provides for monetary support,
health care, arrearages, or reimbursement, and may include related
costs and fees, interest, income withholding, attorney's fees, or
other relief.
   (v) "Tribunal" means a court, administrative agency, or
quasi-judicial entity authorized to establish, enforce, or modify
support orders or to determine parentage.
  SEC. 52.  Section 6380 of the Family Code is amended to read:
   6380.  (a) Each county, with the approval of the Department of
Justice, shall, by July 1, 1996, develop a procedure, using existing
systems, for the electronic transmission of data, as described in
subdivision (b), to the Department of Justice.  The data shall be
electronically transmitted through the California Law Enforcement
Telecommunications System (CLETS) of the Department of Justice by law
enforcement personnel, or with the approval of the Department of
Justice, court personnel, or another appropriate agency capable of
maintaining and preserving the integrity of both the CLETS and the
Domestic Violence Protective Order Registry, as described in
subdivision (e).  Data entry is required to be entered only once
under the requirements of this section, unless the order is served at
a later time.  A portion of all fees payable to the Department of
Justice under subdivision (a) of Section 1203.097 of the Penal Code
for the entry of the information required under this section, based
upon the proportion of the costs incurred by the local agency and
those incurred by the Department of Justice, shall be transferred to
the local agency actually providing the data.  All data with respect
to criminal court protective orders issued under subdivision (g) of
Section 136.2 of the Penal Code shall be transmitted by the court or
its designee within one business day to law enforcement personnel by
either one of the following methods:
   (1) Transmitting a physical copy of the order to a local law
enforcement agency authorized by the Department of Justice to enter
orders into CLETS.
   (2) With the approval of the Department of Justice, entering the
order into CLETS directly.
   (b) Upon the issuance of a protective order to which this division
applies pursuant to Section 6221, or the issuance of a temporary
restraining order or injunction relating to harassment or domestic
violence pursuant to Section 527.6 or 527.8 of the Code of Civil
Procedure, or the issuance of a criminal court protective order under
subdivision (g) of Section 136.2 of the Penal Code, or the issuance
of a juvenile court restraining order related to domestic violence
pursuant to Section 213.5, 304, or 362.4 of the Welfare and
Institutions Code, or upon registration with the court clerk of a
domestic violence protective order issued by the court of another
state, tribe, or territory, and including any of the foregoing orders
issued in connection with an order for modification of a custody or
visitation order issued pursuant to a dissolution, legal separation,
nullity, or paternity proceeding, the Department of Justice shall be
immediately notified of the contents of the order and the following
information:
   (1) The name, race, date of birth, and other personal descriptive
information of the respondent as required by a form prescribed by the
Department of Justice.
   (2) The names of the protected persons.
   (3) The date of issuance of the order.
   (4) The duration or expiration date of the order.
   (5) The terms and conditions of the protective order, including
stay-away, no-contact, residency exclusion, custody, and visitation
provisions of the order.
   (6) The department or division number and the address of the
court.
   (7) Whether or not the order was served upon the respondent.
   (8) The terms and conditions of any restrictions on the ownership
or possession of firearms.
   All available information shall be included; however, the
inability to provide all categories of information shall not delay
the entry of the information available.
   (c) The information conveyed to the Department of Justice shall
also indicate whether the respondent was present in court to be
informed of the contents of the court order.  The respondent's
presence in court shall provide proof of service of notice of the
terms of the protective order.  The respondent's failure to appear
shall also be included in the information provided to the Department
of Justice.
   (d) Immediately upon receipt of proof of service the clerk of the
court, and immediately after service any law enforcement officer who
served the protective order, shall notify the Department of Justice,
by electronic transmission, of the service of the protective order,
including the name of the person who served the order and, if that
person is a law enforcement officer, the law enforcement agency.
   (e) The Department of Justice shall maintain a Domestic Violence
Protective Order Registry and shall make available to court clerks
and law enforcement personnel, through computer access, all
information regarding the protective and restraining orders and
injunctions described in subdivision (b), whether or not served upon
the respondent.
   (f) If a court issues a modification, extension, or termination of
a protective order, the transmitting agency for the county shall
immediately notify the Department of Justice, by electronic
transmission, of the terms of the modification, extension, or
termination.
   (g) The Judicial Council shall assist local courts charged with
the responsibility for issuing protective orders by developing
informational packets describing the general procedures for obtaining
a domestic violence restraining order and indicating the appropriate
Judicial Council forms, and shall include a design, that local
courts shall complete, that describes local court procedures and maps
to enable applicants to locate filing windows and appropriate
courts.  The court clerk shall provide a fee waiver form to all
applicants for domestic violence protective orders.  The court clerk
shall provide all Judicial Council forms required by this chapter to
applicants free of charge.  The informational packet shall also
contain a statement that the protective order is enforceable in any
state, territory, or reservation, and general information about
agencies in other jurisdictions that may be contacted regarding
enforcement of an order issued by a court of this state.
   (h) For the purposes of this part, "electronic transmission"
includes computer access through the California Law Enforcement
Telecommunications System (CLETS).
  SEC. 53.  Section 7572 of the Family Code is amended to read:
   7572.  (a) The State Department of Social Services, in
consultation with the State Department of Health Services, the
California Association of Hospitals and Health Systems, and other
affected health provider organizations, shall work cooperatively to
develop written materials to assist providers and parents in
complying with this chapter.
   (b) The written materials for parents shall be attached to the
form specified in Section 7574, shall be provided to unmarried
parents, and shall contain the following information:
   (1) That a signed voluntary declaration of paternity that is filed
with the State Department of Social Services legally establishes
paternity.
   (2) The legal rights and obligations of both parents and the child
that result from the establishment of paternity.
   (3) An alleged father's constitutional rights to have the issue of
paternity decided by a court; to receive notice of any hearing on
the issue of paternity; to have an opportunity to present his case to
the court, including his right to present and cross-examine
witnesses; to have an attorney represent him; and to have an attorney
appointed to represent him if he cannot afford one in a paternity
action filed by the district attorney.
   (4) That by signing the voluntary declaration of paternity, the
father is voluntarily waiving his constitutional rights.
   (c) Parents shall also be given oral notice of the rights and
responsibilities specified in subdivision (b).  Oral notice may be
accomplished through the use of audio or videotape programs developed
by the State Department of Social Services to the extent permitted
by federal law.
   (d) The State Department of Social Services shall, free of charge,
make available to hospitals, clinics, and other places of birth any
and all informational and training materials for the program under
this chapter, as well as the paternity declaration form.  The State
Department of Social Services shall make training available to every
participating hospital, clinic, local registrar of births and deaths,
and other place of birth no later than June 30, 1999.
   (e) The State Department of Social Services may adopt regulations,
including emergency regulations, necessary to implement this
chapter.
  SEC. 54.  Section 7575 of the Family Code is amended to read:
   7575.  (a) Either parent may rescind the voluntary declaration of
paternity by filing a rescission form with the State Department of
Social Services within 60 days after the date of execution of the
declaration by the attesting father or attesting mother, whichever
signature is later, unless a court order for custody, visitation, or
child support has been entered in an action in which the signatory
seeking to rescind was a party.  The State Department of Social
Services shall develop a form to be used by parents to rescind the
declaration of paternity and instructions on how to complete and file
the rescission with the State Department of Social Services.  The
form shall include a declaration under penalty of perjury completed
by the person filing the rescission form that certifies that a copy
of the rescission form was sent by any form of mail requiring a
return receipt to the other person who signed the voluntary
declaration of paternity.  A copy of the return receipt shall be
attached to the rescission form when filed with the State Department
of Social Services.  The form and instructions shall be written in
simple, easy to understand language and shall be made available at
the local family support office and the office of local registrar of
births and deaths.
   (b) (1) Notwithstanding Section 7573, if the court finds that the
conclusions of all of the experts based upon the results of the
genetic tests performed pursuant to Chapter 2 (commencing with
Section 7550) are that the man who signed the voluntary declaration
is not the father of the child, the court may set aside the voluntary
declaration of paternity.
   (2) The notice of motion for genetic tests under this section may
be filed not later than two years after the date of the child's birth
by either the mother or the man who signed the voluntary declaration
as the child's father in an action to determine the existence or
nonexistence of the father and child relationship pursuant to Section
7630 or in any action to establish an order for child custody,
visitation, or child support based upon the voluntary declaration of
paternity.
   (3) The notice of motion for genetic tests pursuant to this
section shall be supported by a declaration under oath submitted by
the moving party stating the factual basis for putting the issue of
paternity before the court.
   (c) (1) Nothing in this chapter shall be construed to prejudice or
bar the rights of either parent to file an action or motion to set
aside the voluntary declaration of paternity on any of the grounds
described in, and within the time limits specified in, Section 473 of
the Code of Civil Procedure and Chapter 10 (commencing with Section
2120) of Part 1 of Division 6.  If the action or motion to set aside
the voluntary declaration of paternity is based upon an act of fraud
or perjury, the act must have induced the defrauded parent to sign
the voluntary declaration of paternity.  If the action or motion to
set aside a judgment is required to be filed within a specified time
period under Section 473 of the Code of Civil Procedure or Section
2122, the period within which the action or motion to set aside the
voluntary declaration of paternity must be filed shall commence on
the date that the court makes a finding of paternity based upon the
voluntary declaration of paternity in an action for custody,
visitation, or child support.
   (2) The parent seeking to set aside the voluntary declaration of
paternity shall have the burden of proof.
   (3) Any order for custody, visitation, or child support shall
remain in effect until the court determines that the voluntary
declaration of paternity should be set aside, subject to the court's
power to modify the orders as otherwise provided by law.
   (4) Nothing in this section is intended to restrict a court from
acting as a court of equity.
   (5) If the voluntary declaration of paternity is set aside
pursuant to paragraph (1), the court shall order that the mother,
child, and alleged father submit to genetic tests pursuant to Chapter
2 (commencing with Section 7550).  If the court finds that the
conclusions of all the experts, as disclosed by the evidence based
upon the genetic tests, are that the person who executed the
voluntary declaration of paternity is not the father of the child,
the question of paternity shall be resolved accordingly.  If the
person who executed the declaration as the father of the child is not
excluded as a possible father, the question of paternity shall be
resolved as otherwise provided by law.  If the person who executed
the declaration of paternity is ultimately determined to be the
father of the child, any child support that accrued under an order
based upon the voluntary declaration of paternity shall remain due
and owing.
   (6) The Judicial Council shall develop the forms and procedures
necessary to effectuate this subdivision.
  SEC. 55.  Section 6420 of the Fish and Game Code is amended to
read:
   6420.  The Legislature finds and declares all of the following:
   (a) Declines in various southern California marine species of fish
have adversely affected the sport and commercial fishing industry.
   (b) Efforts to enhance these species through the placement of
artificial reefs need to be investigated.
   (c) A program of artificial reef research and development,
including reef design, placement, and monitoring, is in the public
interest and can best be accomplished under the administration of the
department with the cooperation and assistance of the University of
California, the California State University, other established,
appropriate academic institutions, and other organizations with
demonstrated expertise in the field.
   (d) A state artificial reef research and construction program
under the administration of the department is necessary to coordinate
ongoing studies and construction of artificial reefs in waters of
the state.
  SEC. 56.  Section 7151 of the Fish and Game Code is amended to
read:
   7151.  (a) Upon application to the department, the following
persons, if they have not been convicted of any violation of this
code, shall be issued, free of any charge or fee, a sportfishing
license, which is valid for the calendar year of issue or, if issued
after the beginning of the year, for the remainder thereof, and which
authorizes the licensee to take any fish, reptile, or amphibian
anywhere in this state for purposes other than profit:
   (1) A blind person upon presentation of proof of blindness.
"Blind person" means a person with central visual acuity of 20/200 or
less in the better eye, with the aid of the best possible correcting
glasses, or central visual acuity better than 20/200 if the widest
diameter of the remaining visual field is no greater than 20 degrees.
  Proof of blindness shall be by certification from a qualified
licensed optometrist or ophthalmologist or by presentation of a
license issued pursuant to this paragraph in the preceding license
year.
   (2) Every resident Native American who, in the discretion of the
department, is financially unable to pay the fee required for the
license.
   (3) Upon certification by the person in charge of a state
hospital, a person who is a ward of the state and who is a patient
in, and resides in, the state hospital.
   (4) Upon certification by the person in charge of a regional
center for the developmentally disabled, a developmentally disabled
person receiving services from the regional center.
   (5) A person who is a resident of the state and who is so severely
physically disabled as to be permanently unable to move from place
to place without the aid of a wheelchair, walker, forearm crutches,
or a comparable mobility-related device.  Proof of the disability
shall be by certification from a licensed physician and surgeon or,
beginning January 1, 1997, by presentation of a license issued
pursuant to this paragraph for the preceding year.
   (b) Upon application to the department, the department may issue,
free of any charge or fee, a sportfishing permit to groups of
mentally or physically handicapped persons under the care of a
certified federal, state, county, city, or private licensed care
center that is a community care facility as defined in subdivision
(a) of Section 1502 of the Health and Safety Code, to organizations
exempt from taxation under Section 501(c)(3) of the federal Internal
Revenue Code, or to schools or school districts.  Any organization
that applies for a group fishing permit shall provide evidence that
it is a legitimate private licensed care center, tax-exempt
organization, school, or school district.  The permit shall be issued
to the person in charge of the group and shall be in his or her
possession when the group is fishing.  Employees of private licensed
care centers, tax-exempt organizations, schools, or school districts
are exempt from Section 7145 only while assisting physically or
mentally disabled persons fishing under the authority of a valid
permit issued pursuant to this section.  The permit shall include the
location where the activity will take place, the date or dates of
the activity, and the maximum number of people in the group.  The
permitholder shall notify the local department office before fishing
and indicate where, when, and how long the group will fish.
   (c) On January 15 of each year, the department shall determine the
number of free sportfishing licenses issued under subdivisions (a)
and (b) to blind persons, indigent resident Native Americans, wards
of the state, developmentally disabled persons, and physically
disabled persons.
   (d) There shall be appropriated from the General Fund a sum equal
to two dollars ($2) per free sportfishing license issued under
subdivisions (a) and (b), as determined by the department pursuant to
subdivision (c).  That sum may be appropriated annually in the
Budget Act for transfer to the Fish and Game Preservation Fund and
appropriated in the Budget Act from the Fish and Game Preservation
Fund to the department for the purposes of this part.
  SEC. 57.  Section 221 of the Food and Agricultural Code is amended
to read:
   221.  The "Department of Food and Agriculture Fund," which is a
special fund, is continued in existence.  Any money that is directed
by law to be paid into the fund shall be paid into it and, unless
otherwise specifically provided, shall be expended solely for the
enforcement of the law under which the money was derived.  The
expenditure from the fund for the enforcement of any law shall not,
unless otherwise specifically provided, exceed the amount of money
that is credited to the fund pursuant to the law.
   Notwithstanding Section 13340 of the Government Code, all money
deposited in the fund under the provisions enumerated below is hereby
continuously appropriated to the department without regard to fiscal
years for expenditure in carrying out the purposes for which the
money was deposited and for making the refunds authorized by Section
302.
   All money deposited in the fund under the provisions enumerated
below is hereby exempted from Sections 13320 to 13324, inclusive, of
the Government Code:
   (a) Article 7 (commencing with Section 5821) and Article 7.5
(commencing with Section 5850) of Chapter 8 of Part 1 of Division 4,
Chapter 1 (commencing with Section 6701) of Part 3 of Division 4, and
Chapter 5 (commencing with Section 53301) of Division 18.
   (b) Article 5 (commencing with Section 6001) of Chapter 9 of Part
1 of Division 4.
   (c) Article 4.5 (commencing with Section 6971) and Article 5
(commencing with Section 6981) of Chapter 2 of Part 3 of Division 4.

   (d) Chapter 4 (commencing with Section 14200), Chapter 5
(commencing with Section 14501), and Chapter 6 (commencing with
Section 14901) of Division 7.
   (e) Part 1 (commencing with Section 16301) and Part 2 (commencing
with Section 17401) of Division 9.
   (f) Sections 19225, 19227, 19312, and 19315.
   (g) Division 10 (commencing with Section 20001).
   (h) Division 11 (commencing with Section 23001).
   (i) Part 4 (commencing with Section 27501) of Division 12.
   (j) Division 16 (commencing with Section 40501).
   (k) Chapter 9 (commencing with Section 44971) of Division 17.
   (l) Chapter 1 (commencing with Section 52001) of Division 18.
   (m) Chapter 2 (commencing with Section 52251) of Division 18.
   (n) Chapter 3 (commencing with Section 52651) of Division 18.
   (o) Chapter 4 (commencing with Section 52851) of Division 18.
   (p) Chapter 6 (commencing with Section 55401), Chapter 7
(commencing with Section 56101), and Chapter 7.5 (commencing with
Section 56701) of Division 20.
   (q) Section 58582.
   (r) Chapter 1 (commencing with Section 61301), Chapter 2
(commencing with Section 61801), and Chapter 3 (commencing with
Section 62700) of Part 3 of Division 21.
   (s) Chapter 5.5 (commencing with Section 12531) of Division 5 of
the Business and Professions Code.
   (t) Chapter 7 (commencing with Section 12700) of Division 5 of the
Business and Professions Code.
   (u) Chapter 14 (commencing with Section 13400) and Chapter 15
(commencing with Section 13700) of Division 5 of the Business and
Professions Code.
  SEC. 58.  Section 5852 of the Food and Agricultural Code is amended
to read:
   5852.  (a) The department may provide, upon request, nonregulatory
accreditation, analytical, certification, diagnostic, inspection,
quality assurance, testing, and other nonregulatory services relating
to nursery stock, plants, seed, or other plant pests and diseases on
a charge-for-service basis or may accredit private persons or
business entities to perform those services.
   (b) To ensure that the activities performed by private persons or
business entities are valid and reliable, the department shall adopt
regulations to establish accreditation criteria to govern its
accreditation, monitoring or auditing, and revocation of
accreditation activities.  Any regulations adopted by the department
pursuant to this subdivision shall be consistent with applicable
federal law.  The department may adopt by reference any pertinent
federal laws or regulations pertaining to the accreditation of
persons or business entities for the performance of work required to
certify compliance with the quarantine,
                quality, and other import requirements established by
other states or foreign countries.  No private, nongovernmental
entities that perform diagnostic or field inspections for the
issuance of federal phytosanitary certificates shall be accredited
until federal rules are adopted that permit and regulate those
activities.
   (c) To retain accreditation, those persons or business entities
providing services described in subdivision (a) shall agree to be
monitored or assessed and evaluated on a periodic basis by means of
proficiency testing or sample checking.
   (d) It is unlawful for any person or business entity that is not
accredited by the department to make any representation regarding
accreditation by the department.  Any person or business entity that
makes that representation, without valid departmental accreditation,
may be enjoined from doing so by any court of competent jurisdiction
upon suit by the department.
   (e) To assure validity and reliability, the department may
specify, by order, the location or locations where the services
described in subdivision (a) will be provided.
   (f) The department may establish, by regulation, a schedule of
charges to cover the department's costs for specific services it
provides.  Charges for the accreditation and monitoring of
laboratories located outside the state shall include the expenses for
all required travel and per diem and may include application, basic,
initial, renewal, and other charges that the department deems
necessary to cover its costs for accreditation and monitoring or
auditing for compliance.  Funds collected through cost-recovery
charges are dedicated to, and may only be used for, carrying out the
activities and functions specified in this article.
   (g) Notwithstanding any other provision of this code regarding the
provision of the services described in subdivision (a), orders
issued by the department and regulations establishing charges adopted
by the secretary pursuant to this section shall not be subject to
review, approval, or disapproval by the Office of Administrative Law.

   (h) Nothing in this section shall be construed to interfere with
or supersede any existing inspection, quality assurance, or
certification program conducted by an agricultural trade or commodity
organization, and this section shall not be construed to require
those programs to be certified or accredited by the department.
  SEC. 59.  Section 14651 of the Food and Agricultural Code is
amended to read:
   14651.  (a) Unless otherwise specified in this chapter, any
violation of this chapter, or the regulations adopted pursuant to
this chapter, is a misdemeanor , punishable by a fine of not more
than five hundred dollars ($500) for the first violation and not less
than five hundred dollars ($500) for each subsequent violation.
   (b) The director may, after hearing, refuse to issue or renew, or
may suspend or revoke, a license or registration for any violation of
this chapter or any regulation that is adopted pursuant to this
chapter.
   (c) Upon calling a hearing, the director shall hand deliver or
mail a notice of the hearing to the licensee or registrant specifying
the time and place of the hearing at least 10 days prior to the
hearing.  The hearing officer may do any of the following:
   (1) Administer oaths and take testimony.
   (2) Issue subpoenas requiring the attendance of the licensee,
registrant, or witnesses, together with books, records, memoranda,
papers, and all other documents that may be pertinent to the case.
   (3) Compel from the licensee or registrant and any witness the
disclosure of all facts known to him or her regarding the case.  In
no instance shall any employee of Agricultural Commodities and
Regulatory Services serve as the hearing officer in any hearing
conducted pursuant to this section.
   (d) Any person who is denied a license, whose license is not
renewed, or whose license is suspended or revoked pursuant to this
section may appeal to the director.
  SEC. 60.  Section 20797 of the Food and Agricultural Code is
amended to read:
   20797.  Any person who loses his or her right to use a brand as a
result of the determination of the chief pursuant to this article may
appeal to the secretary within 15 days.  The secretary may affirm,
reverse, or modify the determination of the chief.
  SEC. 61.  Section 31753 of the Food and Agricultural Code is
amended to read:
   31753.  Any rabbit, guinea pig, hamster, pot-bellied pig, bird,
lizard, snake, turtle, or tortoise that is legally allowed as
personal property and that is impounded in a public or private
shelter shall be held for the same period of time, under the same
requirements of care, and with the same opportunities for redemption
and adoption by new owners or nonprofit, as defined in Section 501(c)
(3) of the Internal Revenue Code, animal rescue or adoption
organizations as provided for cats and dogs.  Section 17006 shall
also apply to these animals.  In addition to any required spay or
neuter deposit, the pound or shelter, at its discretion, may assess a
fee, not to exceed the standard adoption fee, for animals released
to nonprofit animal rescue or adoption organizations pursuant to this
section.
  SEC. 62.  Section 3517.65 of the Government Code is amended to
read:
   3517.65.  (a) Notwithstanding Section 3517.6, this section shall
apply only to state employees in State Bargaining Unit 19.
   (b) If the provisions of Section 70031 of the Education Code, or
subdivision (i) of Section 3513, or Section 14876, 18714, 19080.5,
19100, 19143, 19261, 19576.1, 19582.3, 19175.5, 19818.16, 19819.1,
19820, 19822, 19824, 19826, 19827, 19828, 19829, 19830, 19831, 19832,
19833, 19834, 19835, 19836, 19837, 19838, 19839, 19840, 19841,
19842, 19843, 19844, 19845, 19846, 19847, 19848, 19849, 19849.1,
19849.4, 19850.1, 19850.2, 19850.3, 19850.4, 19850.5, 19850.6, 19851,
19853, 19854, 19856, 19856.1, 19858.1, 19858.2, 19859, 19860, 19861,
19862, 19862.1, 19863, 19863.1, 19864, 19866, 19869, 19870, 19871,
19871.1, 19872, 19873, 19874, 19875, 19876, 19877, 19877.1, 19878,
19879, 19880, 19880.1, 19881, 19882, 19883, 19884, 19885, 19887,
19887.1, 19887.2, 19888, 19990, 19991, 19991.1, 19991.2, 19991.3,
19991.4, 19991.5, 19991.6, 19991.7, 19992, 19992.1, 19992.2, 19992.3,
19992.4, 19993, 19994.1, 19994.2, 19994.3, 19994.4, 19995, 19995.1,
19995.2, 19995.3, 19996.1, 19996.2, 19998, 19998.1, 20796, 21600,
21602, 21604, 21605, 22825, or 22825.1 are in conflict with the
provisions of a memorandum of understanding, the memorandum of
understanding shall be controlling without further legislative
action.
   (c) If the provisions of Section 19997.2, 19997.9, 19997.10,
19997.12, 19997.14, 19997.43, 19997.48, 19997.51, or 19997.53 are in
conflict with the provisions of a memorandum of understanding, the
terms of the memorandum of understanding shall be controlling unless
the State Personnel Board finds those terms to be inconsistent with
merit employment principles as provided for by Article VII of the
California Constitution.  If this finding is made, the provisions of
the Government Code shall prevail until those affected sections of
the memorandum of understanding are renegotiated to resolve the
inconsistency.  If any provision of the memorandum of understanding
requires the expenditure of funds, those provisions of the memorandum
of understanding shall not become effective unless approved by the
Legislature in the annual Budget Act.  If any provision of the
memorandum of understanding requires legislative action to permit its
implementation by amendment of any section not cited  in this
subdivision, those provisions of the memorandum of understanding
shall not become effective unless approved by the Legislature.
  SEC. 63.  Section 4560 of the Government Code is amended to read:
   4560.  (a) The Legislature finds and declares that there is a
substantial need to provide adequate child care facilities for state
employees.
   (b) When the state constructs, acquires, or receives as a gift any
office building that can accommodate 700 or more state employees, or
when additions, alterations, or repairs are made to any existing
state-owned office building that can accommodate 700 or more state
employees, and the additions, alterations, or repairs both change and
affect the use of 25 percent of the net square feet area of the
building and include the addition to, alteration of, or repair of the
first floor, adequate space shall be designated within the building
to meet the child care needs of those employees, if a review of those
employees slated to occupy the new or renovated building shows
sufficient need for child care services for 30 or more children.  The
review shall be conducted by the Department of General Services and
the Child Development Programs Advisory Committee established
pursuant to Section 8286 of the Education Code.
   (c) The Director of General Services may secure space in any
adequate facility for the same purposes if funds for the offsite
facilities are made available and the director determines that any of
the following conditions exist:
   (1) All other physical requirements controlling the development of
the child care facilities within the office building cannot be
utilized.
   (2) It is more cost-efficient for the state to provide for
equivalent child care facilities within a reasonable distance of the
place of employment.
   (3) Locating the child care center within a reasonable distance
offsite would provide an enhanced facility for the children or would
mitigate security concerns.
   (d) Existing state office buildings, at the discretion of the
Director of General Services, may be retrofitted to accommodate a
child care facility.  State funds required for the retrofitting shall
be subject to regular budgetary procedures and approvals.
   (e) Space designed within a state-owned office building for the
child care facility shall comply with the prevailing local and state
safety building codes for child care facilities.
   (f) The indoor area shall not exceed 2,100 square feet, nor be
less than that required to accommodate 30 children, excluding space
for restrooms, kitchen facilities, storage areas, and teacher
offices.  Outdoor play area space shall correspond with the indoor
play area as described in Title 22 of the California Code of
Regulations.
   (g) Utilization of the space shall be subject to terms and
conditions set forth by the Director of General Services.  The terms
shall include payment of rent, proof of financial responsibility, and
maintenance of space.  The space shall be made available to
employees who wish to establish child care facilities at a rate to be
established by the Director of General Services based upon the
actual cost to the state, the average cost of state-owned space in
the area, or the statewide average cost of state-owned space,
whichever is less.  If, however, the director determines that a lower
rent must be charged to ensure the viability of a child care
facility, the director may charge a lower rate.
   (h) (1)  The department or departments occupying the building
shall notify the employee-occupants in writing of the availability of
space to be used for a child care facility no earlier than 180 days
prior to the projected date of occupancy of a new building or space
provided as the result of additions, alterations, or repairs to an
existing state-owned building, and the additions, alterations, or
repairs that both change and affect the use of 25 percent of the net
square feet area of the building and include the addition to,
alteration of, or repair of the first floor.  If, within 30 days
after full occupancy of a new office building or 30 days after the
completion of additions, alterations, or repairs to an existing
state-owned office building, the employee-occupants so desiring have
not filed an application with the Secretary of State as a nonprofit
corporation for the purpose of organizing a child care center,
deposited two months' rent in a commercial or savings account, and
entered into a contract with the Department of General Services, the
space may be used for any other purpose, as long as no permanent
alteration of the space occurs.  Other purposes may include, but are
not limited to, conference rooms, storage areas, or offices.  The
space for child care shall be held for the employee-occupants'
nonprofit corporation only as long as they pay the monthly rent and
meet the terms set forth in the contract.  Payment of rent shall
commence 30 days after full occupancy of a new office building or 30
days after completion of additions, alterations, or repairs, as
specified in this section.
   (2) If, at a later date, the employee-occupants so desiring (A)
file an application with the Secretary of State as a nonprofit
corporation for the purpose of organizing a child care facility, (B)
deposit two months' rent in a commercial or savings account, and (C)
notify the Director of General Services of those actions, then the
space shall be reconverted for child care purposes within 180 days of
the notice.
   (i) Children from families in which at least one parent or
guardian is a state employee shall be given priority admission over
other children to the child care facility.
   (j) When a child care center within a state-owned office building
has been operative for five years, the Director of General Services
shall assess the child care needs of the state employees using the
center and the office space needs of the building within which the
center is located.  If the assessment demonstrates a greater need for
office space than for child care, the Director of General Services
may close the child care center.  Ninety days' written notice of the
closure shall be given to the director or head teacher of the center.

   (k) This section does not apply to buildings that provide care or
24-hour residential care for patients, inmates, or wards of the
state, such as state hospitals and correctional facilities.
  SEC. 64.  Section 6253 of the Government Code is amended to read:
   6253.  (a) Public records are open to inspection at all times
during the office hours of the state or local agency and every person
has a right to inspect any public record, except as hereafter
provided.  Any reasonably segregable portion of a record shall be
available for inspection by any person requesting the record after
deletion of the portions that are exempted by law.
   (b) Except with respect to public records exempt from disclosure
by express provisions of law, each state or local agency, upon a
request for a copy of records that reasonably describes an
identifiable record or records, shall make the records promptly
available to any person upon payment of fees covering direct costs of
duplication, or a statutory fee if applicable.  Upon request, an
exact copy shall be provided unless impracticable to do so.  Computer
data shall be provided in a form determined by the agency.
   (c) Each agency, upon a request for a copy of records, shall,
within 10 days from receipt of the request, determine whether the
request, in whole or in part, seeks copies of disclosable public
records in the possession of the agency and shall promptly notify the
person making the request of the determination and the reasons
therefor.  In unusual circumstances, the time limit prescribed in
this section may be extended by written notice by the head of the
agency or his or her designee to the person making the request,
setting forth the reasons for the extension and the date on which a
determination is expected to be dispatched.  No notice shall specify
a date that would result in an extension for more than 14 days.  As
used in this section, "unusual circumstances" means the following,
but only to the extent reasonably necessary to the proper processing
of the particular request:
   (1) The need to search for and collect the requested records from
field facilities or other establishments that are separate from the
office processing the request.
   (2) The need to search for, collect, and appropriately examine a
voluminous amount of separate and distinct records that are demanded
in a single request.
   (3) The need for consultation, which shall be conducted with all
practicable speed, with another agency having substantial interest in
the determination of the request or among two or more components of
the agency having substantial subject matter interest therein.
   (d) Nothing in this chapter shall be construed to permit an agency
to obstruct the inspection or copying of public records.  Any
notification of denial of any request for records shall set forth the
names and titles or positions of each person responsible for the
denial.
   (e) Except as otherwise prohibited by law, a state or local agency
may adopt requirements for itself that allow for faster, more
efficient, or greater access to records than prescribed by the
minimum standards set forth in this chapter.
  SEC. 65.  Section 6505.5 of the Government Code is amended to read:

   6505.5.  If a separate agency or entity is created by the
agreement, the agreement shall designate the treasurer of one of the
contracting parties, or in lieu thereof, the county treasurer of a
county in which one of the contracting parties is situated, or a
certified public accountant to be the depositary and have custody of
all the money of the agency or entity, from whatever source.
   The treasurer or certified public accountant so designated shall
do all of the following:
   (a) Receive and receipt for all money of the agency or entity and
place it in the treasury of the treasurer so designated to the credit
of the agency or entity.
   (b) Be responsible, upon his or her official bond, for the
safekeeping and disbursement of all agency or entity money so held by
him or her.
   (c) Pay, when due, out of money of the agency or entity held by
him or her, all sums payable on outstanding bonds and coupons of the
agency or entity.
   (d) Pay any other sums due from the agency or entity from agency
or entity money, or any portion thereof, only upon warrants of the
public officer performing the functions of auditor or controller who
has been designated by the agreement.
   (e) Verify and report in writing on the first day of July,
October, January, and April of each year to the agency or entity and
to the contracting parties to the agreement the amount of money he or
she holds for the agency or entity, the amount of receipts since his
or her last report, and the amount paid out since his or her last
report.
   The officer performing the functions of auditor or controller
shall be of the same public agency as the treasurer designated as
depositary pursuant to this section.  However, where a certified
public accountant has been designated as treasurer of the entity, the
auditor of one of the contracting parties or of a county in which
one of the contracting parties is located shall be designated as
auditor of the entity.  The auditor shall draw warrants to pay
demands against the agency or entity when the demands have been
approved by any person authorized to so approve in the agreement
creating the agency or entity.
   The governing body of the same public entity as the treasurer and
auditor specified pursuant to this section shall determine charges to
be made against the agency or entity for the services of the
treasurer and auditor.  However, where a certified public accountant
has been designated as treasurer, the governing body of the same
public entity as the auditor specified pursuant to this section shall
determine charges to be made against the agency or entity for the
services of the auditor.
  SEC. 66.  Section 7073 of the Government Code is amended to read:
   7073.  (a) Except as provided in subdivision (e), any city,
county, or city and county with an eligible area within its
jurisdiction may complete a preliminary application for designation
as an enterprise zone.  The applying entity shall establish
definitive boundaries for the proposed enterprise zone and the
targeted employment area.
   (b) (1) In designating enterprise zones, the agency shall select
from the applications submitted those proposed enterprise zones that,
upon a comparison of all of the applications submitted, indicate
that they propose the most effective, innovative, and comprehensive
regulatory, tax, program, and other incentives in attracting private
sector investment in the zone proposed.
   (2) For purposes of this subdivision, regulatory incentives
include, but are not limited to, all of the following:
   (A) The suspension or relaxation of locally originated or modified
building codes, zoning laws, general development plans, or rent
controls.
   (B) The elimination or reduction of fees for applications,
permits, and local government services.
   (C) The establishment of a streamlined permit process.
   (3) For purposes of this subdivision, tax incentives include, but
are not limited to, the elimination or reduction of construction
taxes or business license taxes.
   (4) For the purposes of this subdivision, program and other
incentives may include, but are not limited to, all of the following:

   (A) The provision or expansion of infrastructure.
   (B) The targeting of federal block grant moneys, including small
cities, education, and health and welfare block grants.
   (C) The targeting of economic development grants and loan moneys,
including grant and loan moneys provided by the federal Urban
Development Action Grant program and the federal Economic Development
Administration.
   (D) The targeting of state and federal job disadvantaged and
vocational education grant moneys, including moneys provided by the
federal Job Training Partnership Act of 1982 (P.L. 97-300).
   (E) The targeting of federal or state transportation grant moneys.

   (F) The targeting of federal or state low-income housing and
rental assistance moneys.
   (G) The use of tax allocation bonds, special assessment bonds,
bonds under the Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title
5), industrial development bonds, revenue bonds, private activity
bonds, housing bonds, bonds issued pursuant to the Marks-Ross Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of
Chapter 5), certificates of participation, hospital bonds,
redevelopment bonds, school bonds, and all special provisions
provided for under federal tax law for enterprise community or
empowerment zone bonds.
   (5) In the process of designating new enterprise zones, the agency
shall take into consideration the location of existing zones and
make every effort to locate new zones in a manner that will not
adversely affect any existing zones.
   (6) In designating new enterprise zones, the agency shall include
in its criteria the fact that jurisdictions have been declared
disaster areas by the President of the United States within the last
seven years.
   (c) In evaluating applications for designation, the agency shall
ensure that applications are not disqualified solely because of
technical deficiencies, and shall provide applicants with an
opportunity to correct the deficiencies.  Applications shall be
disqualified if the deficiencies are not corrected within two weeks.

   (d) (1) Except as provided in paragraph (2), or upon dedesignation
pursuant to subdivision (c) of Section 7076.1 or Section 7076.2, a
designation made by the agency shall be binding for a period of 15
years from the date of the original designation.
   (2) The designation period for any zone designated pursuant to
either Section 7073 or 7085 prior to 1990 may total 20 years, subject
to possible dedesignation pursuant to subdivision (c) of Section
7076.1 or Section 7076.2, if the following requirements are met:
   (A) The zone receives a superior or passing audit pursuant to
subdivision (c) of Section 7076.1.
   (B) The local jurisdictions comprising the zone submit an updated
economic development plan to the agency justifying the need for an
additional five years by defining goals and objectives that still
need to be achieved and indicating what actions are to be taken to
achieve these goals and objectives.
   (e) (1) Notwithstanding any other provision of law, any area
designated as an enterprise zone pursuant to Chapter 12.8 (commencing
with Section 7070) as it read prior to January 1, 1997, or as a
targeted economic development area, neighborhood economic development
area, or program area pursuant to Chapter 12.9 (commencing with
Section 7080) as it read prior to January 1, 1997, or any program
area or part of a program area deemed designated as an enterprise
zone pursuant to Section 7085.5 as it read prior to January 1, 1997,
shall be deemed to be designated as an enterprise zone pursuant to
this chapter.  The effective date of designation of the enterprise
zone shall be that of the original designation of the enterprise zone
pursuant to Chapter 12.8 (commencing with Section 7070) as it read
prior to January 1, 1997, or of the program area pursuant to Chapter
12.9 (commencing with Section 7080) as it read prior to January 1,
1997, and in no event shall the total designation period exceed 15
years, except as provided in paragraph (2) of subdivision (d).
   (2) Notwithstanding any other provision of law, any enterprise
zone authorized, but not designated, pursuant to Chapter 12.8
(commencing with Section 7070) as it read prior to January 1, 1997,
shall be allowed to complete the application process started pursuant
to that chapter, and to receive final designation as an enterprise
zone pursuant to this chapter.
   (3) Notwithstanding any other provision of law, any expansion of a
designated enterprise zone or program area authorized pursuant to
Chapter 12.8 (commencing with Section 7070) as it read prior to
January 1, 1997, or Chapter 12.9 (commencing with Section 7080) as it
read prior to January 1, 1997, shall be deemed to be authorized as
an expansion for a designated enterprise zone pursuant to this
chapter.
   (4) This chapter shall not be construed to require a new
application for designation by an enterprise zone designated pursuant
to Chapter 12.8 (commencing with Section 7070) as it read prior to
January 1, 1997, or a targeted economic development area,
neighborhood economic development area, or program area designated
pursuant to Chapter 12.9 (commencing with Section 7080) as it read
prior to January 1, 1997.
   (f) No more than 39 enterprise zones shall be designated at any
one time pursuant to this chapter, including those deemed designated
pursuant to subdivision (e).  Upon the expiration or termination of a
designation, the agency is authorized to designate another
                                         enterprise zone to maintain
a total of 39 enterprise zones.
  SEC. 67.  Section 7260 of the Government Code is amended to read:
   7260.  As used in this chapter:
   (a) "Public entity" includes the state, the Regents of the
University of California, a county, city, city and county, district,
public authority, public agency, and any other political subdivision
or public corporation in the state or any entity acting on behalf of
these agencies when acquiring real property, or any interest therein,
in any city or county for public use, and any person who has the
authority to acquire property by eminent domain under state law.
   (b) "Person" means any individual, partnership, corporation,
limited liability company, or association.
   (c) (1) "Displaced person" means both of the following:
   (A) Any person who moves from real property, or who moves his or
her personal property from real property, either:
   (i) As a direct result of a written notice of intent to acquire,
or the acquisition of, the real property, in whole or in part, for a
program or project undertaken by a public entity or by any person
having an agreement with, or acting on behalf of, a public entity.
   (ii) As a direct result of the rehabilitation, demolition, or
other displacing activity, as the public entity may prescribe under a
program or project undertaken by a public entity, of real property
on which the person is a residential tenant or conducts a business or
farm operation, if the public entity determines that the
displacement is permanent.  For purposes of this subparagraph,
"residential tenant" includes any occupant of a residential hotel
unit, as defined in subdivision (b) of Section 50669 of the Health
and Safety Code, and any occupant of employee housing, as defined in
Section 17008 of the Health and Safety Code, but does not include any
person who has been determined to be in unlawful occupancy of the
displacement dwelling.
   (B) Solely for the purposes of Sections 7261 and 7262, any person
who moves from real property, or moves his or her personal property
from real property, either:
   (i) As a direct result of a written notice of intent to acquire,
or the acquisition of, other real property, in whole or in part, on
which the person conducts a business or farm operation for a program
or project undertaken by a public entity.
   (ii) As a direct result of the rehabilitation, demolition, or
other displacing activity as the public entity may prescribe under a
program or project undertaken by a public entity, of other real
property on which the person conducts a business or farm operation,
in any case in which the public entity determines that the
displacement is permanent.
   (2) This subdivision shall be construed so that persons displaced
as a result of public action receive relocation benefits in cases
where they are displaced as a result of an owner participation
agreement or an acquisition carried out by a private person for, or
in connection with, a public use where the public entity is otherwise
empowered to acquire the property to carry out the public use.
   Except for persons or families of low and moderate income, as
defined in Section 50093 of the Health and Safety Code, who are
occupants of housing that was made available to them on a permanent
basis by a public agency and who are required to move from the
housing, a "displaced person" shall not include any of the following:

   (A) Any person who has been determined to be in unlawful occupancy
of the displacement dwellings.
   (B) Any person whose right of possession at the time of moving
arose after the date of the public entity's acquisition of the real
property.
   (C) Any person who has occupied the real property for the purpose
of obtaining assistance under this chapter.
   (D) In any case in which the public entity acquires property for a
program or project (other than a person who was an occupant of the
property at the time it was acquired), any person who occupies the
property for a period subject to termination when the property is
needed for the program or project.
   (d) "Business" means any lawful activity, except a farm operation,
conducted for any of the following:
   (1) Primarily for the purchase, sale, lease, or rental of personal
and real property, and for the manufacture, processing, or marketing
of products, commodities, or any other personal property.
   (2) Primarily for the sale of services to the public.
   (3) Primarily by a nonprofit organization.
   (4) Solely for the purpose of Section 7262 for assisting in the
purchase, sale, resale, manufacture, processing, or marketing of
products, commodities, personal property, or services by the erection
and maintenance of an outdoor advertising display, whether or not
the display is located on the premises on which any of the above
activities are conducted.
   (e) "Farm operation" means any activity conducted solely or
primarily for the production of one or more agricultural products or
commodities, including timber, for sale or home use, and customarily
producing these products or commodities in sufficient quantity to be
capable of contributing materially to the operator's support.
   (f) "Affected property" means any real property that actually
declines in fair market value because of acquisition by a public
entity for public use of other real property and a change in the use
of the real property acquired by the public entity.
   (g) "Public use" means a use for which real property may be
acquired by eminent domain.
   (h) "Mortgage" means classes of liens that are commonly given to
secure advances on, or the unpaid purchase price of, real property,
together with the credit instruments, if any, secured thereby.
   (i) "Comparable replacement dwelling" means any dwelling that is
all of the following:
   (1) Decent, safe, and sanitary.
   (2) Adequate in size to accommodate the occupants.
   (3) In the case of a displaced person who is a renter, within the
financial means of the displaced person.  A comparable replacement
dwelling is within the financial means of a displaced person if the
monthly rental cost of the dwelling, including estimated average
monthly utility costs, minus any replacement housing payment
available to the person, does not exceed 30 percent of the person's
average monthly income, unless the displaced person meets one or more
of the following conditions, in which case the payment of the
monthly rental cost of the comparable replacement dwelling, including
estimated average monthly utility costs, minus any replacement
housing payment available to the person, shall not exceed 25 percent
of the person's average monthly income:
   (A) Prior to January 1, 1998, the displaced person received a
notice to vacate from a public entity, or from a person having an
agreement with a public entity.
   (B) The displaced person resides on property that was acquired by
a public entity, or by a person having an agreement with a public
entity, prior to January 1, 1998.
   (C) Prior to January 1, 1998, a public entity, or a person having
an agreement with a public entity, initiated negotiations to acquire
the property on which the displaced person resides.
   (D) Prior to January 1, 1998, a public entity, or a person having
an agreement with a public entity, entered into an agreement to
acquire the property on which the displaced person resides.
   (E) Prior to January 1, 1998, a public entity, or a person having
an agreement with a public entity, gave written notice of intent to
acquire the property on which the displaced person resides.
   (F) The displaced person is covered by, or resides in an area or
project covered by, a final relocation plan that was adopted by the
legislative body prior to January 1, 1998, pursuant to this chapter
and the regulations adopted pursuant to this chapter.
   (G) The displaced person is covered by, or resides in an area or
project covered by, a proposed relocation plan that was required to
have been submitted prior to January 1, 1998, to the Department of
Housing and Community Development or to a local relocation committee,
or for which notice was required to have been provided to occupants
of the property prior to January 1, 1998, pursuant to this chapter
and the regulations adopted pursuant to this chapter.
   (H) The displaced person is covered by, or resides in an area or
project covered by, a proposed relocation plan that was submitted
prior to January 1, 1998, to the Department of Housing and Community
Development or to a local relocation committee, or for which notice
was provided to the public or to occupants of the property prior to
January 1, 1998, pursuant to this chapter and the regulations adopted
pursuant to this chapter, and the person is eventually displaced by
the project covered in the proposed relocation plan.
   (I) The displaced person resides on property for which a contract
for acquisition, rehabilitation, demolition, construction, or other
displacing activity was entered into by a public entity, or by a
person having an agreement with a public entity, prior to January
1998.
   (J) The displaced person resides on property where an owner
participation agreement, or other agreement between a public entity
and a private party that will result in the acquisition,
rehabilitation, demolition, or development of the property or other
displacement, was entered into prior to January 1, 1998, and the
displaced person resides in the property at the time of the
agreement, provides information to the public entity, or person
having an agreement with the public entity showing that he or she did
reside in the property at the time of the agreement and is
eventually displaced by the project covered in the agreement.
   (4) Comparable with respect to the number of rooms, habitable
space, and type and quality of construction.  Comparability under
this paragraph shall not require strict adherence to a detailed,
feature-by-feature comparison.  While a comparable replacement
dwelling need not possess every feature of the displacement dwelling,
the principal features shall be present.
   (5) In an area not subject to unreasonable adverse environmental
conditions.
   (6) In a location generally not less desirable than the location
of the displaced person's dwelling with respect to public utilities,
facilities, services, and the displaced person's place of employment.

   (j) "Displacing agency" means any public entity or person carrying
out a program or project which causes a person to be a displaced
person for a public project.
   (k) "Appraisal" means a written statement independently and
impartially prepared by a qualified appraiser setting forth an
opinion of defined value of an adequately described property as of a
specific date, supported by the presentation and analysis of relevant
market information.
   (l) "Small business" means a business as defined in Part 24 of
Title 49 of the Code of Federal Regulations.
   (m) "Lead agency" means the Department of Housing and Community
Development.
  SEC. 68.  Section 7262.5 of the Government Code is amended to read:

   7262.5.  Notwithstanding Section 7265.3 or any other provision of
law, tenants residing in any rental project who are displaced from
the project for a period of one year or less as part of a
rehabilitation of that project, that is funded in whole or in part by
a public entity, shall not be eligible for permanent housing
assistance benefits pursuant to Sections 7264 and 7264.5 if all of
the following criteria are satisfied:
   (a) The project is a "qualified affordable housing preservation
project," which means any complex of two or more units whose owners
enter into a recorded regulatory agreement, having a term for the
useful life of the project, with any entity for the provision of
project rehabilitation financing.  For this purpose, the regulatory
agreement shall require of the owner and all successors and assigns
of the owner, as long as the regulatory agreement is in effect, that
at least 49 percent of the tenants in the project have, at the time
of the recordation of the regulatory agreement, incomes not in excess
of 60 percent of the area median income, adjusted by household size,
as determined by the appropriate agency of the state.  In addition,
a project is a qualified affordable housing preservation project only
if the beneficiary of the regulatory agreement elects this
designation by so indicating on the regulatory agreement.
   (b) The resident is offered the right to return to his or her
original unit, or a comparable unit in the same complex if his or her
original unit is not otherwise available due to the rehabilitation,
with rent for the first 12 months subsequent to that return being the
lower of the following: up to 5 percent higher than the rent at the
time of displacement; or up to 30 percent of household income.
   (c) The estimated time of displacement is reasonable, and the
temporary unit is not unreasonably impacted by the effects of the
construction, taking into consideration the ages and physical
conditions of the members of the displaced household.
   (d) All other financial benefits and services otherwise required
under this chapter are provided to the residents temporarily
displaced from their units, including relocation to a comparable
replacement unit.  Residents shall be temporarily relocated to a unit
within the same complex, or to a unit located reasonably near the
complex if that unit is in a location generally not less desirable
than the location of the displaced person's dwelling with respect to
public utilities, services, and the displaced person's place of
employment.
  SEC. 69.  Section 9359.01 of the Government Code is amended to
read:
   9359.01.  (a) Notwithstanding any other provision of this part,
the benefits payable to any person who becomes a member for the first
time on or after January 1, 1990, shall be subject to the
limitations set forth in Section 415 of the Internal Revenue Code.
   (b) Notwithstanding any other law, the benefits payable to any
person who became a member prior to January 1, 1990, shall be subject
to the greater of the following limitations as provided in Section
415(b)(10) of the Internal Revenue Code:
   (1) The limitations set forth in Section 415 of the Internal
Revenue Code.
   (2) The accrued benefit of a member under this system (determined
without regard to any amendment to the system made after October 14,
1987).
  SEC. 70.  Section 12652 of the Government Code is amended to read:

   12652.  (a) (1) The Attorney General shall diligently investigate
violations under Section 12651 involving state funds.  If the
Attorney General finds that a person has violated or is violating
Section 12651, the Attorney General may bring a civil action under
this section against that person.
   (2) If the Attorney General brings a civil action under this
subdivision on a claim involving political subdivision funds as well
as state funds, the Attorney General shall, on the same date that the
complaint is filed in this action, serve by mail with "return
receipt requested" a copy of the complaint on the appropriate
prosecuting authority.
   (3) The prosecuting authority shall have the right to intervene in
an action brought by the Attorney General under this subdivision
within 60 days after receipt of the complaint pursuant to paragraph
(2).  The court may permit intervention thereafter upon a showing
that all of the requirements of Section 387 of the Code of Civil
Procedure have been met.
   (b) (1) The prosecuting authority of a political subdivision shall
diligently investigate violations under Section 12651 involving
political subdivision funds.  If the prosecuting authority finds that
a person has violated or is violating Section 12651, the prosecuting
authority may bring a civil action under this section against that
person.
   (2) If the prosecuting authority brings a civil action under this
section on a claim involving state funds as well as political
subdivision funds, the prosecuting authority shall, on the same date
that the complaint is filed in this action, serve a copy of the
complaint on the Attorney General.
   (3) Within 60 days after receiving the complaint pursuant to
paragraph (2), the Attorney General shall do either of the following:

   (A) Notify the court that it intends to proceed with the action,
in which case the Attorney General shall assume primary
responsibility for conducting the action and the prosecuting
authority shall have the right to continue as a party.
   (B) Notify the court that it declines to proceed with the action,
in which case the prosecuting authority shall have the right to
conduct the action.
   (c) (1) A person may bring a civil action for a violation of this
article for the person and either for the State of California in the
name of the state, if any state funds are involved, or for a
political subdivision in the name of the political subdivision, if
political subdivision funds are exclusively involved.  The person
bringing the action shall be referred to as the qui tam plaintiff.
Once filed, the action may be dismissed only with the written consent
of the court, taking into account the best interests of the parties
involved and the public purposes behind this act.
   (2) A complaint filed by a private person under this subdivision
shall be filed in superior court in camera and may remain under seal
for up to 60 days.  No service shall be made on the defendant until
after the complaint is unsealed.
   (3) On the same day as the complaint is filed pursuant to
paragraph (2), the qui tam plaintiff shall serve by mail with "return
receipt requested" the Attorney General with a copy of the complaint
and a written disclosure of substantially all material evidence and
information the person possesses.
   (4) Within 60 days after receiving a complaint and written
disclosure of material evidence and information alleging violations
that involve state funds but not political subdivision funds, the
Attorney General may elect to intervene and proceed with the action.

   (5) The Attorney General may, for good cause shown, move the court
for extensions of the time during which the complaint remains under
seal pursuant to paragraph (2).  The motion may be supported by
affidavits or other submissions in camera.
   (6) Before the expiration of the 60-day period or any extensions
obtained under paragraph (5), the Attorney General shall do either of
the following:
   (A) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the Attorney General
and the seal shall be lifted.
   (B) Notify the court that it declines to proceed with the action,
in which case the seal shall be lifted and the qui tam plaintiff
shall have the right to conduct the action.
   (7) (A) Within 15 days after receiving a complaint alleging
violations that exclusively involve political subdivision funds, the
Attorney General shall forward copies of the complaint and written
disclosure of material evidence and information to the appropriate
prosecuting authority for disposition, and shall notify the qui tam
plaintiff of the transfer.
   (B) Within 45 days after the Attorney General forwards the
complaint and written disclosure pursuant to subparagraph (A), the
prosecuting authority may elect to intervene and proceed with the
action.
   (C) The prosecuting authority may, for good cause shown, move for
extensions of the time during which the complaint remains under seal.
  The motion may be supported by affidavits or other submissions in
camera.
   (D) Before the expiration of the 45-day period or any extensions
obtained under subparagraph (C), the prosecuting authority shall do
either of the following:
   (i) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the prosecuting
authority and the seal shall be lifted.
   (ii) Notify the court that it declines to proceed with the action,
in which case the seal shall be lifted and the qui tam plaintiff
shall have the right to conduct the action.
   (8) (A) Within 15 days after receiving a complaint alleging
violations that involve both state and political subdivision funds,
the Attorney General shall forward copies of the complaint and
written disclosure to the appropriate prosecuting authority, and
shall coordinate its review and investigation with those of the
prosecuting authority.
   (B) Within 60 days after receiving a complaint and written
disclosure of material evidence and information alleging violations
that involve both state and political subdivision funds, the Attorney
General or the prosecuting authority, or both, may elect to
intervene and proceed with the action.
   (C) The Attorney General or the prosecuting authority, or both,
may, for good cause shown, move the court for extensions of the time
during which the complaint remains under seal under paragraph (2).
The motion may be supported by affidavits or other submissions in
camera.
   (D) Before the expiration of the 60-day period or any extensions
obtained under subparagraph (C), the Attorney General shall do one of
the following:
   (i) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the Attorney General
and the seal shall be lifted.
   (ii) Notify the court that it declines to proceed with the action
but that the prosecuting authority of the political subdivision
involved intends to proceed with the action, in which case the seal
shall be lifted and the action shall be conducted by the prosecuting
authority.
   (iii) Notify the court that both it and the prosecuting authority
decline to proceed with the action, in which case the seal shall be
lifted and the qui tam plaintiff shall have the right to conduct the
action.
   (E) If the Attorney General proceeds with the action pursuant to
clause (i) of subparagraph (D), the prosecuting authority of the
political subdivision shall be permitted to intervene in the action
within 60 days after the Attorney General notifies the court of its
intentions.  The court may authorize intervention thereafter upon a
showing that all the requirements of Section 387 of the Code of Civil
Procedure have been met.
   (9) The defendant shall not be required to respond to any
complaint filed under this section until 30 days after the complaint
is unsealed and served upon the defendant pursuant to Section 583.210
of the Code of Civil Procedure.
   (10) When a person brings an action under this subdivision, no
other person may bring a related action based on the facts underlying
the pending action.
   (d) (1) No court shall have jurisdiction over an action brought
under subdivision (c) against a Member of the State Senate or
Assembly, a member of the state judiciary, an elected official in the
executive branch of the state, or a member of the governing body of
any political subdivision if the action is based on evidence or
information known to the state or political subdivision when the
action was brought.
   (2) A person may not bring an action under subdivision (c) that is
based upon allegations or transactions that are the subject of a
civil suit or an administrative civil money penalty proceeding in
which the state or political subdivision is already a party.
   (3) (A) No court shall have jurisdiction over an action under this
article based upon the public disclosure of allegations or
transactions in a criminal, civil, or administrative hearing, in an
investigation, report, hearing, or audit conducted by or at the
request of the Senate, Assembly, auditor, or governing body of a
political subdivision, or by the news media, unless the action is
brought by the Attorney General or the prosecuting authority of a
political subdivision, or the person bringing the action is an
original source of the information.
   (B) For purposes of subparagraph (A), "original source" means an
individual who has direct and independent knowledge of the
information on which the allegations are based, who voluntarily
provided the information to the state or political subdivision before
filing an action based on that information, and whose information
provided the basis or catalyst for the investigation, hearing, audit,
or report that led to the public disclosure as described in
subparagraph (A).
   (4) No court shall have jurisdiction over an action brought under
subdivision (c) based upon information discovered by a present or
former employee of the state or a political subdivision during the
course of his or her employment unless that employee first, in good
faith, exhausted existing internal procedures for reporting and
seeking recovery of the falsely claimed sums through official
channels and unless the state or political subdivision failed to act
on the information provided within a reasonable period of time.
   (e) (1) If the state or political subdivision proceeds with the
action, it shall have the primary responsibility for prosecuting the
action.  The qui tam plaintiff shall have the right to continue as a
full party to the action.
   (2) (A) The state or political subdivision may seek to dismiss the
action for good cause notwithstanding the objections of the qui tam
plaintiff if the qui tam plaintiff has been notified by the state or
political subdivision of the filing of the motion and the court has
provided the qui tam plaintiff with an opportunity to oppose the
motion and present evidence at a hearing.
   (B) The state or political subdivision may settle the action with
the defendant notwithstanding the objections of the qui tam plaintiff
if the court determines, after a hearing providing the qui tam
plaintiff an opportunity to present evidence, that the proposed
settlement is fair, adequate, and reasonable under all of the
circumstances.
   (f) (1) If the state or political subdivision elects not to
proceed, the qui tam plaintiff shall have the same right to conduct
the action as the Attorney General or prosecuting authority would
have had if it had chosen to proceed under subdivision (c).  If the
state or political subdivision so requests, and at its expense, the
state or political subdivision shall be served with copies of all
pleadings filed in the action and supplied with copies of all
deposition transcripts.
   (2) (A) Upon timely application, the court shall permit the state
or political subdivision to intervene in an action with which it had
initially declined to proceed if the interest of the state or
political subdivision in recovery of the property or funds involved
is not being adequately represented by the qui tam plaintiff.
                               (B) If the state or political
subdivision is allowed to intervene under paragraph (A), the qui tam
plaintiff shall retain principal responsibility for the action and
the recovery of the parties shall be determined as if the state or
political subdivision had elected not to proceed.
   (g) (1) (A) If the Attorney General initiates an action pursuant
to subdivision (a) or assumes control of an action initiated by a
prosecuting authority pursuant to subparagraph (A) of paragraph (3)
of subdivision (b), the office of the Attorney General shall receive
a fixed 33 percent of the proceeds of the action or settlement of the
claim, which shall be used to support its ongoing investigation and
prosecution of false claims.
   (B) If a prosecuting authority initiates and conducts an action
pursuant to subdivision (b), the office of the prosecuting authority
shall receive a fixed 33 percent of the proceeds of the action or
settlement of the claim, which shall be used to support its ongoing
investigation and prosecution of false claims.
   (C) If a prosecuting authority intervenes in an action initiated
by the Attorney General pursuant to paragraph (3) of subdivision (a)
or remains a party to an action assumed by the Attorney General
pursuant to subparagraph (A) of paragraph (3) of subdivision (b), the
court may award the office of the prosecuting authority a portion of
the Attorney General's fixed 33 percent of the recovery under
subparagraph (A), taking into account the prosecuting authority's
role in investigating and conducting the action.
   (2) If the state or political subdivision proceeds with an action
brought by a qui tam plaintiff under subdivision (c), the qui tam
plaintiff shall, subject to paragraphs (4) and (5), receive at least
15 percent but not more than 33 percent of the proceeds of the action
or settlement of the claim, depending upon the extent to which the
qui tam plaintiff substantially contributed to the prosecution of the
action.  When it conducts the action, the Attorney General's office
or the office of the prosecuting authority of the political
subdivision shall receive a fixed 33 percent of the proceeds of the
action or settlement of the claim, which shall be used to support its
ongoing investigation and prosecution of false claims made against
the state or political subdivision.  When both the Attorney General
and a prosecuting authority are involved in a qui tam action pursuant
to subparagraph (C) of paragraph (6) of subdivision (c), the court
at its discretion may award the prosecuting authority a portion of
the Attorney General's fixed 33 percent of the recovery, taking into
account the prosecuting authority's contribution to investigating and
conducting the action.
   (3) If the state or political subdivision does not proceed with an
action under subdivision (c), the qui tam plaintiff shall, subject
to paragraphs (4) and (5), receive an amount that the court decides
is reasonable for collecting the civil penalty and damages on behalf
of the government.  The amount shall be not less than 25 percent and
not more than 50 percent of the proceeds of the action or settlement
and shall be paid out of these proceeds.
   (4) If the action is one provided for under paragraph (4) of
subdivision (d), the present or former employee of the state or
political subdivision is not entitled to any minimum guaranteed
recovery from the proceeds.  The court, however, may award the qui
tam plaintiff those sums from the proceeds as it considers
appropriate, but in no case more than 33 percent of the proceeds if
the state or political subdivision goes forth with the action or 50
percent if the state or political subdivision declines to go forth,
taking into account the significance of the information, the role of
the qui tam plaintiff in advancing the case to litigation, and the
scope of, and response to, the employee's attempts to report and gain
recovery of the falsely claimed funds through official channels.
   (5) If the action is one that the court finds to be based
primarily on information from a present or former employee who
actively participated in the fraudulent activity, the employee is not
entitled to any minimum guaranteed recovery from the proceeds.  The
court, however, may award the qui tam plaintiff any sums from the
proceeds that it considers appropriate, but in no case more than 33
percent of the proceeds if the state or political subdivision goes
forth with the action or 50 percent if the state or political
subdivision declines to go forth, taking into account the
significance of the information, the role of the qui tam plaintiff in
advancing the case to litigation, the scope of the present or past
employee's involvement in the fraudulent activity, the employee's
attempts to avoid or resist the activity, and all other circumstances
surrounding the activity.
   (6) The portion of the recovery not distributed pursuant to
paragraphs (1) to (5), inclusive, shall revert to the state if the
underlying false claims involved state funds exclusively and to the
political subdivision if the underlying false claims involved
political subdivision funds exclusively.  If the violation involved
both state and political subdivision funds, the court shall make an
apportionment between the state and political subdivision based on
their relative share of the funds falsely claimed.
   (7) For purposes of this section, "proceeds" include civil
penalties as well as double or treble damages as provided in Section
12651.
   (8) If the state, political subdivision, or the qui tam plaintiff
prevails in or settles any action under subdivision (c), the qui tam
plaintiff shall receive an amount for reasonable expenses that the
court finds to have been necessarily incurred, plus reasonable costs
and attorney's fees.  All expenses, costs, and fees shall be awarded
against the defendant and under no circumstances shall they be the
responsibility of the state or political subdivision.
   (9) If the state, a political subdivision, or the qui tam
plaintiff proceeds with the action, the court may award to the
defendant its reasonable attorney's fees and expenses against the
party that proceeded with the action if the defendant prevails in the
action and the court finds that the claim was clearly frivolous,
clearly vexatious, or brought solely for purposes of harassment.
   (h) The court may stay an act of discovery of the person
initiating the action for a period of not more than 60 days if the
Attorney General or local prosecuting authority show that the act of
discovery would interfere with an investigation or a prosecution of a
criminal or civil matter arising out of the same facts, regardless
of whether the Attorney General or local prosecuting authority
proceeds with the action.  This showing shall be conducted in camera.
  The court may extend the 60-day period upon a further showing in
camera that the Attorney General or local prosecuting authority has
pursued the criminal or civil investigation or proceedings with
reasonable diligence and any proposed discovery in the civil action
will interfere with the ongoing criminal or civil investigation or
proceedings.
   (i) Upon a showing by the Attorney General or local prosecuting
authority that unrestricted participation during the course of the
litigation by the person initiating the action would interfere with
or unduly delay the Attorney General's or local prosecuting authority'
s prosecution of the case, or would be repetitious, irrelevant, or
for purposes of harassment, the court may, in its discretion, impose
limitations on the person's participation, including the following:
   (1) Limiting the number of witnesses the person may call.
   (2) Limiting the length of the testimony of the witnesses.
   (3) Limiting the person's cross-examination of witnesses.
   (4) Otherwise limiting the participation by the person in the
litigation.
   (j) The False Claims Act Fund is hereby created in the State
Treasury.  Proceeds from the action or settlement of the claim by the
Attorney General pursuant to this article shall be deposited into
this fund.  Moneys in this fund, upon appropriation by the
Legislature, shall be used by the Attorney General to support the
ongoing investigation and prosecution of false claims in furtherance
of this article.
  SEC. 71.  Section 13965.2 of the Government Code is amended to
read:
   13965.2.  Whenever an application for assistance has been
approved, and the board determines that an independent evaluation
pursuant to paragraph (5) of subdivision (a) of Section 13965 is
appropriate, the victim or derivative victim shall be notified of the
name of the provider who is to perform the evaluation within 30 days
of  that determination.
  SEC. 72.  Section 14838.5 of the Government Code is amended to
read:
   14838.5.  (a) Notwithstanding the advertising and bidding
requirements of Chapter 6 (commencing with Section 14825) and Section
10302 of the Public Contract Code, a state agency may award a
contract for the acquisition of goods, services, or information
technology that has an estimated value of greater than two thousand
five hundred dollars ($2,500), but less than fifty thousand dollars
($50,000), to a small business, as long as the agency obtains price
quotations from two or more small businesses.
   (b) In carrying out subdivision (a), state agencies shall consider
a responsive offer timely received from a responsible small
business.
   (c) If the estimated cost to the state is less than two thousand
five hundred dollars ($2,500) and for the acquisition of goods,
services, or information technology, or a greater amount as
administratively established by the director, a state agency shall
obtain at least two price quotations from responsible suppliers
whenever there is reason to believe a response from a single source
is not a fair and reasonable price.
  SEC. 73.  Section 18523.3 of the Government Code is amended to
read:
   18523.3.  (a) Notwithstanding Section 18523, this section shall
apply only to state employees in State Bargaining Unit 19.
   (b) "Class" means a group of positions sufficiently similar with
respect to duties and responsibilities that the same title may
reasonably and fairly be used to designate each position allocated to
the class, that substantially the same tests of fitness may be used,
that substantially the same minimum qualifications may be required,
and that the same schedule of compensation may be made to apply with
equity.
   (c) The board may also establish "broadband" classes for which the
same general title may be used to designate each position allocated
to the class and that may include more than one level or more than
one specialty area within the same general field of work.  In
addition to the minimum qualifications for each broadband class,
other job-related qualifications may be required for particular
positions within the class.  When the board establishes a broadband
class, these levels and specialty areas shall be described in the
class specification, and the board shall specify any instances in
which these levels and speciality areas are to be treated as separate
classes for purposes of applying other provisions of law.
  SEC. 74.  Section 19141.3 of the Government Code is amended to
read:
   19141.3.  (a) Notwithstanding Section 19141, this section shall
apply only to state employees in State Bargaining Unit 19.
   (b) This section applies only to a permanent employee, or an
employee who previously had permanent status and who, since that
permanent status, has had no break in the continuity of his or her
state service due to a permanent separation.  As used in this
section, "former position" is defined as in Section 18522, or, if the
appointing power to which reinstatement is to be made and the
employee agree, a vacant position in any department, commission, or
state agency for which he or she is qualified at substantially the
same level.
   (c) Within the periods of time specified below, an employee who
vacates a civil service position to accept an appointment to an
exempt position shall be reinstated to his or her former position
upon termination either by the employee or appointing power of the
exempt appointment, provided that he or she (1) accepted the
appointment without a break in the continuity of state service and
(2) requests in writing reinstatement by the appointing power of his
or her former position within 10 working days after the effective
date of the termination.
   (d) The reinstatement may be requested by the employee only within
the following periods of time:
   (1) At any time after the effective date of the exempt appointment
if the employee was appointed under one of the following:
   (A) Subdivision (a), (b), (c), (d), (e), (f), (g), or (m) of
Section 4 of Article VII of the California Constitution.
   (B) Section 2.1 of Article IX of the California Constitution.
   (C) Section 22 of Article XX of the California Constitution.
   (D) To an exempt position under the same appointing power as the
former position even though a shorter period of time may be otherwise
specified for that appointment.
   (2) Within six months after the effective date of the exempt
appointment if appointed under subdivision (h), (i), (k), or (l) of
Section 4 of Article VII of the California Constitution.
   (3) Within four years after the effective date of an exempt
appointment if appointed under any other authority.
   (e) An employee who vacates his or her civil service position to
accept an assignment as a member, inmate, or patient helper under
subdivision (j) of Section 4 of Article VII of the California
Constitution shall not have a right to reinstatement.
   (f) An employee who is serving under an exempt appointment retains
a right of reinstatement when he or she accepts an extension of that
exempt appointment or accepts a new exempt appointment, provided
that the extension or new appointment is made within the specified
reinstatement time limit and there is no break in the continuity of
state service.  The reinstatement right is retained for the period
applicable to the extended or new exempt appointment as if that
appointment had been made on the date of the initial exempt
appointment.
   (g) When an employee exercises his or her right of reinstatement
and returns to his or her former position, the service while under an
exempt appointment shall be deemed to be time served in the former
position for the purpose of determining his or her eligibility for
merit salary increases.
   (h) If the termination of an exempt appointment is for a reason
contained in Section 19997 and the employee does not have a right to
reinstatement, he or she shall have his or her name placed on the
departmental and general reemployment lists for the class of his or
her former position.
  SEC. 75.  Section 19175.6 of the Government Code is amended to
read:
   19175.6.  (a) Notwithstanding Section 19175, this section applies
only to state employees in State Bargaining Unit 19.
   (b) The board at the written request of a rejected probationer,
filed within 15 calendar days of the effective date of rejection,
shall only review allegations that the rejection was made for reasons
of discrimination as defined for the purposes of subdivision (a) of
Section 19702, fraud, or political patronage.  If the board
determines that the rejected probationer has stated a prima facie
case of discrimination, fraud, or political patronage, the board may
investigate the case with or without a hearing, and do any one of the
following:
   (1) Affirm the action of the appointing power.
   (2) Modify the action of the appointing power.
   (3) Restore the name of the rejected probationer to the employment
list for certification to any position within the class, provided
that his or her name shall not be certified to the agency by which he
or she was rejected except with the concurrence of the appointing
power thereof.
   (4) Restore the rejected probationer to the position from which he
or she was rejected, only if the board determines that there is
substantial evidence to support that the rejection was made for
reasons of discrimination as defined for the purposes of subdivision
(a) of Section 19702, fraud, or political patronage.  At the
investigation or hearing the rejected probationer shall have the
burden of proof; subject to rebuttal by him or her, it shall be
presumed that the rejection was free from discrimination, fraud, and
political patronage, and that the statement of reasons therefor in
the notice of rejection is true.
  SEC. 76.  Section 19576.5 of the Government Code is amended to
read:
   19576.5.  Notwithstanding Section 19576, this section applies only
to state employees in State Bargaining Unit 8.
   (a) Minor discipline is a suspension without pay for five days or
less or up to a 5-percent reduction in pay for five months or less.
Whenever an answer is filed by an employee who is subject to minor
discipline, and the memorandum of understanding for state employees
in State Bargaining Unit 8 has expired, the state employer shall
follow the minor discipline appeal procedures contained in the
expired memorandum of understanding for state employees in State
Bargaining Unit 8 until a successor agreement is negotiated between
the Department of Personnel Administration and the exclusive
representative.  However, if an employee receives one of the cited
actions in more than three instances in any 12-month period, he or
she shall, upon each additional action within the same 12-month
period, be afforded a hearing before the State Personnel Board if he
or she files an answer to the action.
   (b) The State Personnel Board shall not have the authority stated
in subdivision (a) with regard to written or oral reprimands.
Reprimands shall not be grievable or appealable by the receiving
employee by any means.  Rejections on probation shall not be
grievable or appealable by the receiving employee by any means except
as provided in Section 19175.1.
   (c) The appointing power shall not impose any discipline in a
manner that is inconsistent with "salary basis test" against an
employee employed in an executive, administrative, or professional
capacity and whose duties exempt him or her from the wage and hour
provisions of the federal Fair Labor Standards Act as set forth
pursuant to Section 13(a)(1) of the Fair Labor Standards Act of 1938,
as amended (29 U.S.C. Sec. 213(a)(1)), and in Part 54 of Title 29 of
the Code of Federal Regulations, as defined and delimited on the
effective date of this section, and as those provisions may be
amended in the future by the Administrator of the Wage and Hour
Division of the United States Department of Labor.
   (d) Disciplinary action taken pursuant to this section shall not
be subject to any of the following provisions:  Sections 19180,
19574.1, 19574.2, 19575, 19575.5, 19579, 19580, 19581, 19581.5,
19582, 19583, and 19587, and State Personnel Board Rules 51.1 to
51.9, inclusive, 52, and 52.1 to 52.5, inclusive.
   (e) Notwithstanding any other law or rule, if any provision of
this section is in conflict with any provision of the memorandum of
understanding reached pursuant to Section 3517.5, the memorandum of
understanding shall be controlling without further legislative
action, except that if provisions of a memorandum of understanding
require the expenditure of funds, those provisions shall not become
effective unless approved by the Legislature in the annual Budget
Act.
   (f) If the State Personnel Board establishes regulations to
implement this section, the regulations shall be consistent with the
expired memorandum of understanding for state employees in State
Bargaining Unit 8 and the Ralph C. Dills Act (Part 10.3 (commencing
with Section 3512) of Division 4 of Title 1).
  SEC. 77.  Section 19582.3 of the Government Code is amended to
read:
   19582.3.  (a) Notwithstanding Section 19582, this section applies
only to state employees in State Bargaining Unit 19.
   (b) The board's review of decisions of minor discipline, as
defined by a memorandum of understanding or by Section 19576.4, shall
be limited to either adopting the penalty of the proposed decision
or revoking the disciplinary action in its entirety.
   (c) The board's review of decisions of discipline, including minor
discipline, shall not impose any discipline against an employee that
would jeopardize the employee's status under the federal Fair Labor
Standards Act, as set forth pursuant to Section 13(a)(1) of the Fair
Labor Standards Act of 1938, as amended (29 U.S.C. Sec. 213(a)(1))
and in Part 54 of Title 29 of the Code of Federal Regulations, as
defined and delimited on the effective date of this section and as
those provisions  may be amended in the future.
   (d) If any provision of this section is in conflict with any
provision of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if any provision of a
memorandum of understanding requires the expenditure of funds, the
provision shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 78.  Section 20068.2 of the Government Code is amended to
read:
   20068.2.  (a) Notwithstanding Section 20068, this section applies
only to state employees in State Bargaining Unit 19.
   (b) "State safety service" means service rendered as a state
safety member only while receiving compensation for that service,
except as provided in Article 4 (commencing with Section 20990) of
Chapter 11.  It also includes service rendered in an employment in
which persons have since become state safety members and service
rendered prior to April 1, 1973, and falling within the definition of
warden, forestry, and law enforcement service under this chapter
prior to April 1, 1973.  "State safety service" pursuant to this
subdivision does not include service as an investigator prior to
April 1, 1973, within the Department of Justice by persons who, prior
to April 1, 1973, were classified as miscellaneous members.
   (c) "State safety service," with respect to a member who becomes a
state safety member pursuant to Section 20405, also includes service
prior to the date on which he or she becomes a state safety member
as an officer or employee of the Board of Prison Terms, Department of
Corrections, Prison Industry Authority, or the Department of the
Youth Authority.
   (d) "State safety service," with respect to a member who becomes a
state safety member pursuant to Sections 20409 and 20410, also
includes service in a class specified in those sections or service
pursuant to subdivision (a) prior to September 27, 1982.
   (e) "State safety service," with respect to a member who becomes a
state safety member pursuant to Sections 20414 and 20415, shall also
include service prior to September 22, 1982, as an officer or
employee of the Department of Parks and Recreation or the Military
Department.
   (f) "State safety service" does not include service in classes
specified in Section 20407 prior to January 1, 1989.
   (g) "State safety service" does not include service in classes
specified in Section 20408 prior to January 1, 1990.
   (h) "State safety service," with respect to a member who becomes a
state safety member pursuant to subdivision (b) of Section 20405.3,
shall also include service rendered in an employment in which persons
have since become state safety members, as determined by the
Department of Personnel Administration pursuant to that section.
  SEC. 79.  Section 20677 of the Government Code is amended to read:

   20677.  (a) (1) The normal rate of contribution for a state
miscellaneous member whose service is not included in the federal
system shall be 6 percent of the compensation in excess of three
hundred seventeen dollars ($317) per month paid that member for
service rendered on and after July 1, 1976.  The normal rate of
contribution for a school member or a local miscellaneous member
shall be 7 percent of the compensation paid that member for service
rendered on and after June 21, 1971.
   (2) The normal rate of contribution for a state miscellaneous or
industrial member who has elected to be subject to Section 21353.5
and whose service is not included in the federal system shall be 6
percent of the member's compensation.
   (3) The normal rate of contribution, as established under this
subdivision for a member whose service is included in the federal
system, and whose service retirement allowance is reduced under
Section 21353, 21353.5, or 21354 because of that inclusion, shall be
reduced by one-third as applied to compensation not exceeding four
hundred dollars ($400) per month for service after the date of
execution of the agreement, including service in the federal system
and prior to termination of the agreement, with respect to the
coverage group to which he or she belongs.
   (b) (1) The normal rate of contribution for a state miscellaneous
member whose service has been included in the federal system shall be
5 percent of compensation in excess of five hundred thirteen dollars
($513) per month paid that member for service rendered on and after
July 1, 1976.
   (2) The normal rate of contribution for a state miscellaneous or
industrial member who has elected to be subject to Section 21353.5
and whose service has been included in the federal system shall be 5
percent of compensation, subject to the reduction specified in
paragraph (3) of subdivision (a).
   (c) The normal rate of contribution for a state miscellaneous or
industrial member who elects to become subject to Section 21076 or
21077 shall be zero percent, unless the member subsequently elects to
become subject to Section 21353, as authorized by subdivision (c) of
Section 21070 or Section 21353.5.  A member who elects to become
subject to Section 21353 shall contribute at the rate specified in
paragraph (1) of subdivision (a) or paragraph (1) of subdivision (b),
as determined by the member's status with the federal system, and
the rate shall be applied from the first of the month following the
date of the election.  A member who makes the election shall also
contribute for service prior to the date the contribution rate was
applied, in the manner specified in Section 21073.  A member who
elected to become subject to Section 21353 solely for service
rendered on or after the effective date of the election, as
authorized by subdivision (c) of Section 21070 during the period
between November 1, 1988, and October 31, 1989, is not required to
make the contributions specified in Section 21073.
                                                               SEC.
80.  Section 21028 of the Government Code is amended to read:
   21028.  "Public service" also means service in temporary,
seasonal, limited term, on call, emergency, intermittent, substitute,
or other irregular employment in which a person is excluded from
membership.
  SEC. 81.  Section 22200 of the Government Code is amended to read:

   22200.  The board is hereby authorized on behalf of the state to
administer and to maintain in full force and effect the agreement
entered into between the state and the Federal Security Administrator
on March 9, 1951, and all modifications thereof heretofore made.
  SEC. 82.  Section 22209 of the Government Code is amended to read:

   22209.  At the request of a public agency, or as otherwise
permitted by the board, any class or classes of positions covered by
a retirement system which may be excluded from coverage under the
federal system pursuant to paragraph (3) or (5) of Section 218(c) of
the Social Security Act, and to which the agreement does not already
apply, may be excluded from the agreement at the time it is made
applicable to such retirement system; except that such exclusion
shall not include any services to which Section 218(c)(3)(B) of the
Social Security Act is applicable.
  SEC. 83.  Section 22754.5 of the Government Code is amended to
read:
   22754.5.  (a) Notwithstanding Section 22754, for state employees
in State Bargaining Unit 8 or 16 and members of State Bargaining Unit
8 or 16 who retire on or after the effective date of this section
and who meet the definition of annuitant, "eligible family member"
means:
   (1) The legal spouse in a marriage recognized by the state.
   (2) A child under the age of 19 years who has never been married
or who has obtained a legal annulment.  This includes:
   (A) The natural or adopted child, or stepchild, of the employee or
annuitant.
   (B) A child who is not the natural or adopted child, or stepchild,
of the employee or annuitant and who is not receiving or eligible
for coverage through another source and who meets either of the
following conditions:
   (i) The employee or annuitant has legal or joint custody of the
child.
   (ii) The child is a grandchild living in the household of the
employee or annuitant, and the natural parent or parents are not
living in the same household.
   (3) A child over the age of 19 years but under the age of 23 years
who has never been married or who has obtained a legal annulment and
meets the criteria of subparagraph (A) or (B) of paragraph (2) may
continue to be enrolled if the child is one of the following:
   (A) Enrolled on an ongoing basis as a college student for at least
nine semester college units or equivalent quarter units.
   (B) Enrolled on an ongoing basis in an adult continuation school
curriculum that would result in a high school diploma or its
equivalent.  An employee or annuitant whose child continues to be
enrolled under this paragraph must provide the employer or benefit
carrier, upon request, with an annual certification of schooling or
enrollment.
   (4) A child under the age of 19 years who has never been married
or who has obtained a legal annulment may continue to be enrolled
after attaining the age of 19 years if he or she is incapable of
self-support because of physical disability or mental incapacity and
he or she is dependent on the employee or annuitant for support and
care.  A disabled child may continue to be enrolled after attaining
the age of 19 years only if he or she was enrolled as disabled at the
time of the employee's initial enrollment or became disabled while
enrolled as an eligible family member prior to attaining the age of
19 years.  The employee or annuitant must provide satisfactory
evidence of the disability within 60 days after the disabled child
attains the age of 19 years.  Necessary documentation, as prescribed
by the employer, must be completed, processed, and approved by the
Public Employees' Retirement System.  An annual certification of
continued disability may be required.
   (b) At the time of enrollment or audit, an employee or annuitant
will be required to provide proof of eligibility for all enrolled
family members that may include any of the following:
   (1) A valid marriage certificate.
   (2) A birth certificate.
   (3) A certification of disability.
   (4) Legal custody documents.
   (5) A copy of the employee's or annuitant's signed state income
tax return.
  SEC. 84.  Section 54953 of the Government Code, as added by Section
2 of Chapter 399 of the Statutes of 1988, is repealed.
  SEC. 85.  Section 54975 of the Government Code is amended to read:

   54975.  The board of supervisors shall include in the Local
Appointments List prepared pursuant to Section 54972 all appointments
of public members and alternate public members made to the local
agency formation commission pursuant to Sections 56325, 56329, 56330,
56331, and 56333.
   Whenever an unscheduled vacancy occurs in a local agency formation
commission, the board of supervisors shall cause a special vacancy
notice to be posted as provided in Section 54974.  Final appointment
to fill the vacancy may not be made by the appointing body for at
least 10 working days after the posting of the notice.
  SEC. 86.  The heading of Article 5 (commencing with Section 63043)
of Chapter 2 of Division 1 of Title 6.7 of the Government Code is
amended to read:

      Article 5.  Financing Economic Development Facilities

  SEC. 87.  The heading of Chapter 6 (commencing with Section 66400)
of Division 1 of Title 7 of the Government Code is amended and
renumbered to read:

      CHAPTER 10.  HIGHWAY INTERCHANGE DISTRICTS

  SEC. 88.  Section 66400 of the Government Code is amended and
renumbered to read:
   66100.  The Legislature finds and declares that , because
substantial public moneys will be expended on the development of the
West Side Freeway  portion of Interstate Route 5, including the
development of recreational and scenic observation sites in
relatively undeveloped areas, and because new commercial and other
development tends to locate at freeway interchanges in these areas,
and this development may be detrimental to both traffic capacity and
safety and to the preservation of the scenic characteristics along
the freeway route, it is therefore necessary, in the interests of the
public health, safety, and welfare, and to safeguard community
economic development along the route of the freeway, to establish
controls over the kinds, intensity, and design of land use and
development that are permitted to occur at those interchanges along
the freeway route from its intersection with the San Joaquin River to
the junction of the route with State Highway Route 99 in the
vicinity of Wheeler Ridge.
  SEC. 89.  Section 66401 of the Government Code is amended and
renumbered to read:
   66101.  To preserve the effective traffic capacity and safety of
the West Side Freeway, to maintain and enhance the present character
of the landscape abutting the freeway, and to ensure compatible land
use and development at and near interchanges along the route, the
kind, intensity, and design of land use and development occurring at
the freeway interchanges on the portion of the West Side Freeway
designated in Section 66100 shall be regulated within highway
interchange districts, which districts shall be established by each
local jurisdiction traversed by the West Side Freeway in which is
located any of the interchanges identified in this chapter.
  SEC. 90.  Section 66402 of the Government Code is amended and
renumbered to read:
   66102.  The boundaries of each district shall be designated by the
local jurisdiction within which each interchange is located and
shall include the territory that the local jurisdiction deems to be
affected by each interchange, but in no case shall the area consist
of less than a circle of one-mile radius from the point of
intersection of the centerline of the West Side Freeway with the
centerline of any highway, street, or road intersecting at an
interchange.
  SEC. 91.  Section 66403 of the Government Code is amended and
renumbered to read:
   66103.  Each local jurisdiction shall prepare for each highway
interchange district a general land use plan and appropriate zoning
ordinances by January 1, 1964.  It shall be recognized that this
state has a continuing interest in adequate enforcement of these
plans and ordinances due to construction by this state of the West
Side Freeway.
  SEC. 92.  Section 1206 of the Health and Safety Code is amended to
read:
   1206.  This chapter does not apply to the following:
   (a) Except with respect to the option provided with regard to
surgical clinics in paragraph (1) of subdivision (b) of Section 1204
and, further, with respect to specialty clinics specified in
paragraph (2) of subdivision (b) of Section 1204, any place or
establishment owned or leased and operated as a clinic or office by
one or more licensed health care practitioners and used as an office
for the practice of their profession, within the scope of their
license, regardless of the name used publicly to identify the place
or establishment.
   (b) Any clinic directly conducted, maintained, or operated by the
United States or by any of its departments, officers, or agencies,
and any primary care clinic specified in subdivision (a) of Section
1204 that is directly conducted, maintained, or operated by this
state or by any of its political subdivisions or districts, or by any
city.  Nothing in this subdivision precludes the state department
from adopting regulations that utilize clinic licensing standards as
eligibility criteria for participation in programs funded wholly or
partially under Title XVIII or XIX of the federal Social Security
Act.
   (c) Any clinic conducted, maintained, or operated by a federally
recognized Indian tribe or tribal organization, as defined in Section
450 or 1601 of Title 25 of the United States Code, and which is
located on land recognized as tribal land by the federal government.

   (d) Clinics conducted, operated, or maintained as outpatient
departments of hospitals.
   (e) Any facility licensed as a health facility under Chapter 2
(commencing with Section 1250).
   (f) Any freestanding clinical or pathological laboratory licensed
under Chapter 3 (commencing with Section 1200) of Division 2 of the
Business and Professions Code.
   (g) A clinic operated by, or affiliated with, any institution of
learning that teaches a recognized healing art and is approved by the
state board or commission vested with responsibility for regulation
of the practice of that healing art.
   (h) A clinic that is operated by a primary care community or free
clinic and that is operated on separate premises from the licensed
clinic and is only open for limited services of no more than 20 hours
a week.  An intermittent clinic as described in this paragraph
shall, however, meet all other requirements of law, including
administrative regulations and requirements, pertaining to fire and
life safety.
   (i) The offices of physicians in group practice who provide a
preponderance of their services to members of a comprehensive group
practice prepayment health care service plan subject to Chapter 2.2
(commencing with Section 1340) .
   (j) Student health centers operated by public institutions of
higher education.
   (k) Nonprofit speech and hearing centers, as defined in Section
1201.5.  Any nonprofit speech and hearing clinic desiring an
exemption under this subdivision shall make application therefor to
the director, who shall grant the exception to any facility meeting
the criteria of Section 1201.5.  Notwithstanding the licensure
exemption contained in this subdivision, a nonprofit speech and
hearing center shall be deemed to be an organized outpatient clinic
for purposes of qualifying for reimbursement as a rehabilitation
center under the Medi-Cal Act (Chapter 7 (commencing with Section
14000) of Part 3 of Division 9 of the Welfare and Institutions Code).

   (l) A clinic operated by a nonprofit corporation exempt from
federal income taxation under paragraph (3) of subsection (c) of
Section 501 of the Internal Revenue Code of 1954, as amended, or a
statutory successor thereof, that conducts medical research and
health education and provides health care to its patients through a
group of 40 or more physicians and surgeons, who are independent
contractors representing not less than 10 board-certified
specialties, and not less than two-thirds of whom practice on a
full-time basis at the clinic.
   (m) Any clinic, limited to in vivo diagnostic services by magnetic
resonance imaging functions or radiological services under the
direct and immediate supervision of a physician and surgeon who is
licensed to practice in California.  This shall not be construed to
permit cardiac catheterization or any treatment modality in these
clinics.
   (n) A clinic operated by an employer or jointly by two or more
employers for their employees only, or by a group of employees, or
jointly by employees and employers, without profit to the operators
thereof or to any other person, for the prevention and treatment of
accidental injuries to, and the care of the health of, the employees
comprising the group.
   (o) A community mental health center as defined in Section 5601.5
of the Welfare and Institutions Code.
   (p) (1) A clinic operated by a nonprofit corporation exempt from
federal income taxation under paragraph (3) of subsection (c) of
Section 501 of the Internal Revenue Code of 1954, as amended, or a
statutory successor thereof, as an entity organized and operated
exclusively for scientific and charitable purposes and that satisfies
all of the following requirements:
   (A) Commenced conducting medical research on or before January 1,
1982, and continues to conduct medical research.
   (B) Conducted research in, among other areas, prostatic cancer,
cardiovascular disease, electronic neural prosthetic devices,
biological effects and medical uses of lasers, and human magnetic
resonance imaging and spectroscopy.
   (C) Sponsored publication of at least 200 medical research
articles in peer-reviewed publications.
   (D) Received grants and contracts from the National Institutes of
Health.
   (E) Held and licensed patents on medical technology.
   (F) Received charitable contributions and bequests totaling at
least five million dollars ($5,000,000).
   (G) Provides health care services to patients only:
   (i) In conjunction with research being conducted on procedures or
applications not approved or only partially approved for payment (I)
under the Medicare program pursuant to Section 1359y(a)(1)(A) of
Title 42 of the United States Code, or (II) by a health care service
plan registered under Chapter 2.2 (commencing with Section 1340) or a
disability insurer regulated under Chapter 1 (commencing with
Section 10110) of Part 2 of Division 2 of the Insurance Code;
provided that services may be provided by the clinic for an
additional period of up to three years following the approvals, but
only to the extent necessary to maintain clinical expertise in the
procedure or application for purposes of actively providing training
in the procedure or application for physicians and surgeons unrelated
to the clinic.
   (ii) Through physicians and surgeons who, in the aggregate, devote
no more than 30 percent of their professional time for the entity
operating the clinic, on an annual basis, to direct patient care
activities for which charges for professional services are paid.
   (H) Makes available to the public the general results of its
research activities on at least an annual basis, subject to good
faith protection of proprietary rights in its intellectual property.

   (I) Is a freestanding clinic, whose operations under this
subdivision are not conducted in conjunction with any affiliated or
associated health clinic or facility defined under this division,
except a clinic exempt from licensure under subdivision (m).  For
purposes of this subparagraph, a freestanding clinic is defined as
"affiliated" only if it directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common
control with, a clinic or health facility defined under this
division, except a clinic exempt from licensure under subdivision
(m).  For purposes of this subparagraph, a freestanding clinic is
defined as "associated" only if more than 20 percent of the directors
or trustees of the clinic are also the directors or trustees of any
individual clinic or health facility defined under this division,
except a clinic exempt from licensure under subdivision (m).  Any
activity by a clinic under this subdivision in connection with an
affiliated or associated entity shall fully comply with the
requirements of this subdivision.  This subparagraph shall not apply
to agreements between a clinic and any entity for purposes of
coordinating medical research.
   (2) This subdivision shall become inoperative on January 1, 2003.
Prior to extending or deleting that inoperative date, the
Legislature shall receive a report from each clinic meeting the
criteria of this subdivision and any other interested party
concerning the operation of the clinic's activities.  The report
shall include, but not be limited to, an evaluation of how the clinic
impacted competition in the relevant health care market, and a
detailed description of the clinic's research results and the level
of acceptance by the payer community of the procedures performed at
the clinic.  The report shall also include a description of
procedures performed both in clinics governed by this subdivision and
those performed in other settings.
  SEC. 93.  Section 1261.5 of the Health and Safety Code is amended
to read:
   1261.5.  (a) The number of oral dosage form or suppository form
drugs provided by a pharmacy to a health facility licensed pursuant
to subdivision (c) or (d), or both (c) and (d), of Section 1250 for
storage in a secured emergency supplies container, pursuant to
Section 4035 of the Business and Professions Code, shall be limited
to 24.  The State Department of Health Services may limit the number
of doses of each drug available to not more than four doses of any
separate drug dosage form in each emergency supply.
   (b) Any limitations established pursuant to subdivision (a) on the
number and quantity of oral dosage or suppository form drugs
provided by a pharmacy to a health facility licensed pursuant to
subdivision (c), (d), or both (c) and (d), of Section 1250 for
storage in a secured emergency supplies container shall not apply to
an automated drug delivery system, as defined in Section 1261.6, when
a pharmacist controls access to the drugs.  This subdivision shall
become operative on July 1, 1999.
  SEC. 94.  Section 1261.6 of the Health and Safety Code is amended
to read:
   1261.6.  (a) For purposes of this section and Section 1261.5, an
"automated drug delivery system" means a mechanical system that
performs operations or activities, other than compounding or
administration, relative to the storage, dispensing, or distribution
of drugs.  An automated drug delivery system shall collect, control,
and maintain all transaction information to accurately track the
movement of drugs into and out of the system for security, accuracy,
and accountability.
   (b) Transaction information shall be made readily available in a
written format for review and inspection by individuals authorized by
law.  These records shall be maintained in the facility for a
minimum of three years.
   (c) Individualized and specific access to automated drug delivery
systems shall be limited to facility and contract personnel
authorized by law to administer drugs.
   (d) (1) The facility and the pharmacy shall develop and implement
written policies and procedures to ensure safety, accuracy,
accountability, security, patient confidentiality, and maintenance of
the quality, potency, and purity of stored drugs.  Policies and
procedures shall define access to the automated drug delivery system
and limits to access to equipment and drugs.
   (2) All policies and procedures shall be maintained at the
location where the automated drug delivery system is being used.
   (e) Drugs removed from the automated drug delivery system shall be
limited to the following:
   (1) A new drug order given by a prescriber for a patient of the
facility for administration prior to the next scheduled delivery from
the pharmacy, or 72 hours, whichever is less.  The drugs shall be
retrieved only upon authorization by a pharmacist and after the
pharmacist has reviewed the prescriber's order and the patient's
profile for potential contraindications and adverse drug reactions.
   (2) Drugs that a prescriber has ordered for a patient on an
as-needed basis, if the utilization and retrieval of those drugs are
subject to ongoing review by a pharmacist.
   (3) Drugs designed by the patient care policy committee or
pharmaceutical service committee of the facility as emergency drugs
or acute onset drugs.  These drugs may be retrieved from an automated
drug delivery system pursuant to the order of a prescriber for
emergency or immediate administration to a patient of the facility.
Within 48 hours after retrieval under this paragraph, the case shall
be reviewed by a pharmacist.
   (f) The stocking of an automated drug delivery system shall be
performed by a pharmacist.  If the automated drug delivery system
utilizes removable pockets or drawers, or similar technology, the
stocking system may be done outside of the facility and be delivered
to the facility if all of the following conditions are met:
   (1) The task of placing drugs into the removable pockets or
drawers is performed by a pharmacist or by an intern pharmacist or a
pharmacy technician working under the direct supervision of a
pharmacist.
   (2) The removable pockets or drawers are transported between the
pharmacy and the facility in a secure tamper-evident container.
   (3) The facility, in conjunction with the pharmacy, has developed
policies and procedures to ensure that the pockets or drawers are
properly placed into the automated drug delivery system.
   (g) Review of the drugs contained within, and the operation and
maintenance of, the automated drug delivery system shall be done in
accordance with law and shall be the responsibility of the pharmacy.
The review shall be conducted on a monthly basis by a pharmacist and
shall include a physical inspection of the drugs in the automated
drug delivery system, an inspection of the automated drug delivery
system machine for cleanliness, and a review of all transaction
records in order to verify the security and accountability of the
system.
   (h) Drugs dispensed from an automated drug delivery system that
meets the requirements of this section shall not be subject to the
labeling requirements of Section 4076 of the Business and Professions
Code or Section 111480 of this code if the drugs to be placed into
the automated drug delivery system are in unit dose packaging or unit
of use and if the information required by Section 4076 of the
Business and Professions Code and Section 111480 of this code is
readily available at the time of drug administration.
   (i) This section shall become operative on July 1, 1999.
  SEC. 95.  Section 1300 of the Health and Safety Code is amended to
read:
   1300.  (a) Any licensee or holder of a special permit may, with
the approval of the state department, surrender his or her license or
special permit for suspension or cancellation by the state
department.  Any license or special permit suspended or canceled
pursuant to this section may be reinstated by the state department on
receipt of an application showing compliance with the requirements
of Section 1265.
   (b) Before approving a downgrade or closure of emergency services
pursuant to subdivision (a), the state department shall receive a
copy of the impact evaluation of the county to determine impacts,
including, but not limited to, an impact evaluation of the downgrade
or closure upon the community, including community access to
emergency care, and how that downgrade or closure will affect
emergency services provided by other entities.  Development of the
impact evaluation shall incorporate at least one public hearing.  The
county in which the proposed downgrade or closure will occur shall
ensure the completion of the impact evaluation, and shall notify the
state department of results of an impact evaluation within three days
of the completion of that evaluation.  The county may designate the
local emergency medical services agency as the appropriate agency to
conduct the impact evaluation.  The impact evaluation and hearing
shall be completed within 60 days of the county receiving
notification of intent to downgrade or close emergency services.  The
county or designated local emergency medical services agency shall
ensure that all hospital and prehospital health care providers in the
geographic area impacted by the service closure or change are
consulted with, and that local emergency service agencies and
planning or zoning authorities are notified, prior to completing an
impact evaluation as required by this section.  This subdivision
shall be implemented on and after the date that the county in which
the proposed downgrade or closure will occur, or its designated local
emergency medical services agency, has developed a policy specifying
the criteria it will consider in conducting an impact evaluation, as
required by subdivision (c).
   (c) The Emergency Medical Services Authority shall develop
guidelines for development of impact evaluation policies.  On or
before June 30, 1999, each county or its designated local emergency
medical services agency shall develop a policy specifying the
criteria it will consider in conducting an impact evaluation pursuant
to subdivision (b).  Each county or its designated local emergency
medical services agency shall submit its impact evaluation policy to
the state department and the Emergency Medical Services Authority
within three days of completion of the policy.  The Emergency Medical
Services Authority shall provide technical assistance upon request
to a county or its designated local emergency medical services
agency.
  SEC. 96.  Section 1351.2 of the Health and Safety Code is amended
to read:
   1351.2.  (a)  If a health care service plan licensed under the
laws of Mexico elects to operate a health care service plan in this
state, the plan shall apply for licensure as a health care service
plan under this chapter by filing an application for licensure in the
form prescribed by the department
                 and verified by an authorized representative of the
applicant.  The plan shall be subject to the provisions of this
chapter, and the rules adopted by the commissioner thereunder, as
determined by the commissioner to be applicable.  The application
shall be accompanied by the fee prescribed by subdivision (a) of
Section 1356 and shall demonstrate compliance with the following
requirements:
   (1) The plan is operating lawfully under the laws of Mexico.
   (2) The plan offers and sells in this state only
employer-sponsored group plan contracts exclusively for the benefit
of citizens of Mexico legally employed in this state, and for the
benefit of their dependents regardless of nationality, that pay for,
reimburse the cost of, or arrange for the provision or delivery of
health care services that are to be provided or delivered wholly in
Mexico, except for the provision or delivery of those health care
services set forth in paragraph (4).
   (3) Solicitation of plan contracts in this state is made only
through insurance brokers and agents licensed in this state or a
third-party administrator licensed in this state, each of which is
authorized by the plan to offer and sell plan group contracts.
   (4) Group contracts provide, through a contract of insurance
between the plan and an insurer admitted in this state, for the
reimbursement of emergency and urgent care services provided out of
area as required by subdivision (h) of Section 1345.
   (5) All advertising, solicitation material, disclosure statements,
evidences of coverage, and contracts are in compliance with the
appropriate provisions of this chapter and the rules or orders of the
commissioner.  The commissioner shall require that each of these
documents contain a legend in 10-point type, in both English and
Spanish, declaring that the health care service plan contract
provided by the plan may be limited as to benefits, rights, and
remedies under state and federal law.
   (6) All funds received by the plan from a subscriber are deposited
in an account of a bank organized under the laws of this state or in
an account of a national bank located in this state.
   (7) The plan maintains a tangible net equity as required by this
chapter and the rules of the commissioner, as calculated under United
States generally accepted accounting principles, in the amount of at
least one million dollars ($1,000,000).  In lieu of an amount in
excess of the minimum tangible net equity of one million dollars
($1,000,000), the plan may demonstrate a reasonable acceptable
alternative reimbursement arrangement that the commissioner may in
his or her discretion accept.  The plan shall also maintain a
fidelity bond and a surety bond as required by Section 1376 and the
rules of the commissioner.
   (8) The plan agrees to make all of its books and records,
including the books and records of health care providers in Mexico,
available to the commissioner in the form and at the time and place
requested by the commissioner.  Books and records shall be made
available to the commissioner no later than 24 hours from the date of
the request.
   (9) The plan files a consent to service of process with the
commissioner and agrees to be subject to the laws of this state and
the United States in any investigation, examination, dispute, or
other matter arising from the advertising, solicitation, or offer and
sale of a plan contract, or the management or provision of health
care services in this state or throughout the United States.  The
plan shall agree to notify the commissioner, immediately and in no
case later than one business day, if it is subject to any
investigation, examination, or administrative or legal action
relating to the plan or the operations of the plan initiated by the
government of Mexico or the government of any state of Mexico against
the plan or any officer, director, security holder, or contractor
owning 10 percent or more of the securities of the plan.  The plan
shall agree that in the event of conflict of laws in any action
arising out of the license, the laws of California and the United
States shall apply.
   (10) The plan agrees that disputes arising from the group
contracts involving group contract holders and providers of health
care services in the United States shall be subject to the
jurisdiction of the courts of this state and the United States.
   (b) The plan shall pay the application processing fee and other
fees and assessments specified in Section 1356.  When consistent with
the intent and purpose of this chapter and in the public interest,
the commissioner, by order, may designate provisions of this chapter
and rules adopted thereunder that need not be applied to a health
care service plan licensed under the laws of Mexico.
  SEC. 97.  Section 1357.09 of the Health and Safety Code is amended
to read:
   1357.09.  No plan shall be required to offer a health care service
plan contract or accept applications for such a contract pursuant to
this article in the case of any of the following:
   (a) A small employer, where the small employer is not physically
located in a plan's approved service areas, or where an eligible
employee and dependents who are to be covered by the plan contract do
not work or reside within a plan's approved service areas.
   (b) A specific service area or portion of a service area where a
plan reasonably anticipates and demonstrates to the satisfaction of
the commissioner that it will not have sufficient health care
delivery resources to assure that health care services will be
available and accessible to the eligible employee and dependents of
the employee because of its obligations to existing enrollees.
   (1) A plan that cannot offer a health care service plan contract
to small employers because it is lacking in sufficient health care
delivery resources within a service area or a portion of a service
area may not offer a contract in the area in which the plan is not
offering coverage to small employers to new employer groups with more
than 50 eligible employees until the plan notifies the commissioner
that it has the ability to deliver services to small employer groups,
and certifies to the commissioner that from the date of the notice
it will enroll all small employer groups requesting coverage in that
area from the plan unless the plan has met the requirements of
subdivision (d).
   (2) Nothing in this article shall be construed to limit the
commissioner's authority to develop and implement a plan of
rehabilitation for a health care service plan whose financial
viability or organizational and administrative capacity have become
impaired.
   (c) A small employer or an eligible employee as defined under
paragraph (2) of subdivision (b) of Section 1357 who, within 12
months of application for coverage, disenrolled from a plan contract
offered by the plan.
   (d) A case in which the commissioner approves the plan's
certification that the number of eligible employees and dependents
enrolled under contracts issued during the current calendar year
equals or exceeds (1) in the case of a plan that administers any
self-funded health coverage arrangements in California, 10 percent of
the total enrollment of the plan in California as of December 31 of
the preceding year, or (2) in the case of a plan that does not
administer any self-funded health coverage arrangements in
California, 8 percent of the total enrollment of the plan in
California as of December 31 of the preceding year.  If that
certification is approved, the plan may not offer any health care
service plan contract to any small employers during the remainder of
the current year.
   (1) If a health care service plan treats an affiliate or
subsidiary as a separate carrier for the purpose of this article
because one health care service plan is qualified under the federal
Health Maintenance Organization Act and does not offer coverage to
small employers, while the affiliate or subsidiary offers a plan
contract that is not qualified under the federal Health Maintenance
Organization Act and offers plan contracts to small employers, the
health care service plan offering coverage to small employers shall
enroll new eligible employees and dependents, equal to the applicable
percentage of the total enrollment of both the health care service
plan qualified under the federal Health Maintenance Organization Act
and its affiliate or subsidiary.
   (2) The certified statement filed pursuant to this subdivision
shall state the following:
   (A) Whether the plan administers any self-funded health coverage
arrangements in California.
   (B) The plan's total enrollment as of December 31 of the preceding
year.
   (C) The number of eligible employees and dependents enrolled under
contracts issued to small employer groups during the current
calendar year.
   The commissioner shall, within 45 days, approve or disapprove the
certified statement.  If the certified statement is disapproved, the
plan shall continue to issue coverage as required by Section 1357.03
and be subject to disciplinary action as prescribed by Article 7
(commencing with Section 1386).
   (e) A health care service plan that, as of December 31 of the
prior year, had a total enrollment of fewer than 100,000 and 50
percent or more of the plan's total enrollment have premiums paid by
the Medi-Cal program.
   (f) A social health maintenance organization, as described in
subdivision (a) of Section 2355 of the federal Deficit Reduction Act
of 1984 (Public Law 97-369), that, as of December 31 of the prior
year, had a total enrollment of fewer than 100,000 and has 50 percent
or more of the organization's total enrollment premiums paid by the
Medi-Cal program or Medicare programs, or by a combination of
Medi-Cal and Medicare.  In no event shall this exemption be based
upon enrollment in Medicare supplement contracts, as described in
Article 3.5 (commencing with Section 1358).
  SEC. 98.  Section 1357.50 of the Health and Safety Code is amended
to read:
   1357.50.  For purposes of this article:
   (a) "Health benefit plan" means any individual or group insurance
policy or health care service plan contract that provides medical,
hospital, and surgical benefits.  The term does not include accident
only, credit, disability income, coverage of Medicare services
pursuant to contracts with the United States government, Medicare
supplement, long-term care insurance, dental, vision, coverage issued
as a supplement to liability insurance, insurance arising out of a
workers' compensation or similar law, automobile medical payment
insurance, or insurance under which benefits are payable with or
without regard to fault and that is statutorily required to be
contained in any liability insurance policy or equivalent
self-insurance.
   (b) "Late enrollee" means an eligible employee or dependent who
has declined health coverage under a health benefit plan offered
through employment or sponsored by an employer at the time of the
initial enrollment period provided under the terms of the health
benefit plan, and who subsequently requests enrollment in a health
benefit plan of that employer, provided that the initial enrollment
period shall be at least 30 days.  However, an eligible employee or
dependent shall not be considered a late enrollee if any of the
following is applicable:
   (1) The individual meets all of the following requirements:
   (A) The individual was covered under another employer health
benefit plan or no-share-of-cost Medi-Cal coverage at the time the
individual was eligible to enroll.
   (B) The individual certified, at the time of the initial
enrollment that coverage under another employer health benefit plan
or no-share-of-cost Medi-Cal coverage was the reason for declining
enrollment, provided that, if the individual was covered under
another employer health benefit plan, the individual was given the
opportunity to make the certification required by this subdivision
and was notified that failure to do so could result in later
treatment as a late enrollee.
   (C) The individual has lost or will lose coverage under another
employer health benefit plan as a result of termination of employment
of the individual or of a person through whom the individual was
covered as a dependent, change in employment status of the individual
or of a person through whom the individual was covered as a
dependent, termination of the other plan's coverage, cessation of an
employer's contribution toward an employee or dependent's coverage,
death of a person through whom the individual was covered as a
dependent, legal separation, divorce, or loss of no-share-of-cost
Medi-Cal coverage.
   (D) The individual requests enrollment within 30 days after
termination of coverage, or cessation of employer contribution toward
coverage provided under another employer health benefit plan.
   (2) The individual is employed by an employer that offers multiple
health benefit plans and the individual elects a different plan
during an open enrollment period.
   (3) A court has ordered that coverage be provided for a spouse or
minor child under a covered employee's health benefit plan.  The
health benefit plan shall enroll a dependent child within 30 days
after receipt of a court order or request from the district attorney,
either parent or the person having custody of the child as defined
in Section 3751.5 of the Family Code, the employer, or the group
administrator.  In the case of children who are eligible for
medicaid, the State Department of Health Services may also make the
request.
   (4) The plan cannot produce a written statement from the employer
stating that, prior to declining coverage, the individual or the
person through whom the individual was eligible to be covered as a
dependent was provided with, and signed acknowledgment of, explicit
written notice in bold type specifying that failure to elect coverage
during the initial enrollment period permits the plan to impose, at
the time of the individual's later decision to elect coverage, an
exclusion from coverage for a period of 12 months as well as a
six-month preexisting condition exclusion, unless the individual
meets the criteria specified in paragraph (1), (2), or (3).
   (5) The individual is an employee or dependent who meets the
criteria described in paragraph (1) and was under a COBRA
continuation provision, and the coverage under that provision has
been exhausted.  For purposes of this section, the definition of
"COBRA" set forth in subdivision (e) of Section 1373.621 shall apply.

   (6) The individual is a dependent of an enrolled eligible employee
who has lost or will lose his or her no-share-of-cost Medi-Cal
coverage and requests enrollment within 30 days of notification of
this loss of coverage.
   (c) "Preexisting condition provision" means a contract provision
that excludes coverage for charges or expenses incurred during a
specified period following the enrollee's effective date of coverage,
as to a condition for which medical advice, diagnosis, care, or
treatment was recommended or received during a specified period
immediately preceding the effective date of coverage.
   (d) "Creditable coverage" means:
   (1) Any individual or group policy, contract, or program that is
written or administered by a disability insurance company, nonprofit
hospital service plan, health care service plan, fraternal benefits
society, self-insured employer plan, or any other entity, in this
state or elsewhere, and that arranges or provides medical, hospital,
and surgical coverage not designed to supplement other private or
governmental plans.  The term includes continuation or conversion
coverage but does not include accident only, credit, coverage for
onsite medical clinics, disability income, Medicare supplement,
long-term care insurance, dental, vision, coverage issued as a
supplement to liability insurance, insurance arising out of a workers'
compensation or similar law, automobile medical payment insurance,
or insurance under which benefits are payable with or without regard
to fault and that is statutorily required to be contained in any
liability insurance policy or equivalent self-insurance.
   (2) The federal Medicare program pursuant to Title XVIII of the
Social Security Act.
   (3) The medicaid program pursuant to Title XIX of the Social
Security Act.
   (4) Any other publicly sponsored program, provided in this state
or elsewhere, of medical, hospital, and surgical care.
   (5) Chapter 55 (commencing with Section 1071) of Title 10 of the
United States Code (Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS)).
   (6) A medical care program of the Indian Health Service or of a
tribal organization.
   (7) A state health benefits risk pool.
   (8) A health plan offered under Chapter 89 (commencing with
Section 8901) of Title 5 of the United States Code (Federal Employees
Health Benefits Program (FEHBP)).
   (9) A public health plan as defined in federal regulations
authorized by Section 2701(c)(1)(I) of the Public Health Service Act,
as amended by Public Law 104-191 (Health Insurance Portability and
Accountability Act of 1996).
   (10) A health benefit plan under Section 5(e) of the Peace Corps
Act (22 U.S.C. Sec. 2504(e)).
   (11) Any other creditable coverage as defined by subsection (c) of
Section 2701 of Title XXVII of the federal Public Health Services
Act (42 U.S.C. Sec. 300gg(c)).
   (e) "Waivered condition" means a contract provision that excludes
coverage for charges or expenses incurred during a specified period
of time for one or more specific, identified, medical conditions.
   (f) "Affiliation period" means a period that, under the terms of
the health benefit plan, must expire before health care services
under the plan become effective.
  SEC. 99.  Section 1357.51 of the Health and Safety Code is amended
to read:
   1357.51.  (a) No plan contract that covers three or more enrollees
shall exclude coverage for any individual on the basis of a
preexisting condition provision for a period greater than six months
following the individual's effective date of coverage.  Preexisting
condition provisions contained in plan contracts may relate only to
conditions for which medical advice, diagnosis, care, or treatment,
including use of prescription drugs, was recommended or received from
a licensed health practitioner during the six months immediately
preceding the effective date of coverage.
   (b) No plan contract that covers one or two individuals shall
exclude coverage on the basis of a preexisting condition provision
for a period greater than 12 months following the individual's
effective date of coverage, nor shall the plan limit or exclude
coverage for a specific enrollee by type of illness, treatment,
medical condition, or accident, except for satisfaction of a
preexisting condition clause pursuant to this article.  Preexisting
condition provisions contained in plan contracts may relate only to
conditions for which medical advice, diagnosis, care, or treatment,
including use of prescription drugs, was recommended or received from
a licensed health practitioner during the 12 months immediately
preceding the effective date of coverage.
   (c) A plan that does not utilize a preexisting condition provision
may impose a waiting or affiliation period not to exceed 60 days,
before the coverage issued subject to this article shall become
effective.  During the waiting or affiliation period, the plan is not
required to provide health care services and no premium shall be
charged to the subscriber or enrollee.
   (d) A plan that does not utilize a preexisting condition provision
in plan contracts that cover one or two individuals may impose a
contract provision excluding coverage for waivered conditions.  No
plan may exclude coverage on the basis of a waivered condition for a
period greater than 12 months following the individual's effective
date of coverage.  A waivered condition provision contained in plan
contracts may relate only to conditions for which medical advice,
diagnosis, care, or treatment, including use of prescription drugs,
was recommended or received from a licensed health practitioner
during the 12 months immediately preceding the effective date of
coverage.
   (e) In determining whether a preexisting condition provision, a
waivered condition provision, or a waiting or affiliation period
applies to any enrollee, a plan shall credit the time the enrollee
was covered under creditable coverage, provided that the enrollee
becomes eligible for coverage under the succeeding plan contract
within 62 days of termination of prior coverage, exclusive of any
waiting or affiliation period, and applies for coverage under the
succeeding plan within the applicable enrollment period.  A plan
shall also credit any time that an eligible employee must wait before
enrolling in the plan, including any postenrollment or
employer-imposed waiting or affiliation period.
   However, if a person's employment has ended, the availability of
health coverage offered through employment or sponsored by an
employer has terminated, or an employer's contribution toward health
coverage has terminated, a plan shall credit the time the person was
covered under creditable coverage if the person becomes eligible for
health coverage offered through employment or sponsored by an
employer within 180 days, exclusive of any waiting or affiliation
period, and applies for coverage under the succeeding plan contract
within the applicable enrollment period.
   (f) No plan shall exclude late enrollees from coverage for more
than 12 months from the date of the late enrollee's application for
coverage.  No plan shall require any premium or other periodic charge
to be paid by or on behalf of a late enrollee during the period of
exclusion from coverage permitted by this subdivision.
   (g) A health care service plan issuing group coverage may not
impose a preexisting condition exclusion upon the following:
   (1) A newborn individual, who, as of the last day of the 30-day
period beginning with the date of birth, has applied for coverage
through the employer-sponsored plan.
   (2) A child who is adopted or placed for adoption before attaining
18 years of age and who, as of the last day of the 30-day period
beginning with the date of adoption or placement for adoption, is
covered under creditable coverage and applies for coverage through
the employer-sponsored plan.  This provision shall not apply if, for
63 continuous days, the child is not covered under any creditable
coverage.
   (3) A condition relating to benefits for pregnancy or maternity
care.
   (h) An individual's period of creditable coverage shall be
certified pursuant to subsection (e) of Section 2701 of Title XXVII
of the federal Public Health Services Act (42 U.S.C. Sec.  300gg(e)).

  SEC. 100.  Section 1367.24 of the Health and Safety Code is amended
to read:
   1367.24.  (a) Every health care service plan that provides
prescription drug benefits shall maintain an expeditious process by
which prescribing providers may obtain authorization for a medically
necessary nonformulary prescription drug.  On or before July 1, 1999,
every health care service plan that provides prescription drug
benefits shall file with the department a description of its process,
including timelines, for responding to authorization requests for
nonformulary drugs.  Any changes to this process shall be filed with
the department pursuant to Section 1352.  Each plan shall provide a
written description of its most current process, including timelines,
to its prescribing providers.  For purposes of this section, a
prescribing provider shall include a provider authorized to write a
prescription, pursuant to subdivision (a) of Section 4040 of the
Business and Professions Code, to treat a medical condition of an
enrollee.
   (b) Any plan that disapproves a request made pursuant to
subdivision (a) by a prescribing provider to obtain authorization for
a nonformulary drug shall provide the reasons for the disapproval in
a notice provided to the enrollee.  The notice shall indicate that
the enrollee may file a grievance with the plan if the enrollee
objects to the disapproval, including any alternative drug or
treatment offered by the plan.  The notice shall comply with
subdivision (b) of Section 1368.02.
   (c) The process described in subdivision (a) by which prescribing
providers may obtain authorization for medically necessary
nonformulary drugs shall not apply to a nonformulary drug that has
been prescribed for an enrollee in conformance with the provisions of
Section 1367.22.
   (d) The process described in subdivision (a) by which enrollees
may obtain medically necessary nonformulary drugs, including
specified timelines for responding to prescribing provider
authorization requests, shall be described in evidence of coverage
and disclosure forms, as required by subdivision (a) of Section 1363,
issued on or after July 1, 1999.
   (e) Every health care service plan that provides prescription drug
benefits shall maintain, as part of its books and records under
Section 1381, all of the following information, which shall be made
available to the commissioner upon request:
   (1) The complete drug formulary or formularies of the plan, if the
plan maintains a formulary, including a list of the prescription
drugs on the formulary of the plan by major therapeutic category with
an indication of whether any drugs are preferred over other drugs.
   (2) Records developed by the pharmacy and therapeutic committee of
the plan, or by others responsible for developing, modifying, and
overseeing formularies, including medical groups, individual practice
associations, and contracting pharmaceutical benefit management
companies, used to guide the drugs prescribed for the enrollees of
the plan, that fully describe the reasoning behind formulary
decisions.
   (3) Any plan arrangements with prescribing providers, medical
groups, individual practice associations, pharmacists, contracting
pharmaceutical benefit management companies, or other entities that
are associated with activities of the plan to encourage formulary
compliance or otherwise manage prescription drug benefits.
   (f) If a plan provides prescription drug benefits, the department
shall, as part of its periodic onsite medical survey of each plan
undertaken pursuant to Section 1380, review the performance of the
plan in providing those benefits, including, but not limited to, a
review of the procedures and information maintained pursuant to this
section, and describe the performance of the plan as part of its
report issued pursuant to Section 1380.

         (g) The commissioner shall not publicly disclose any
information reviewed pursuant to this section that is determined by
the commissioner to be confidential pursuant to state law.
   (h) Nothing in this section shall be construed to restrict or
impair the application of any other provision of this chapter,
including, but not limited to, Section 1367, which includes among its
requirements that a health care service plan furnish services in a
manner providing continuity of care and demonstrate that medical
decisions are rendered by qualified medical providers unhindered by
fiscal and administrative management.
  SEC. 101.  Section 1442.5 of the Health and Safety Code is amended
to read:
   1442.5.  (a) Prior to (1) closing , (2) eliminating or reducing
the level of medical services provided by, or (3) the leasing,
selling, or transfer of management of, a county facility, the board
shall provide public notice, including notice posted at the entrance
to all county health care facilities, of public hearings to be held
by the board prior to its decision to proceed.  The notice shall be
posted not less than 14 days prior to the public hearings.  The
notice shall contain a list of the proposed reductions or changes, by
facility and service.  The notice shall include the amount and type
of each proposed change, the expected savings, and the number of
persons affected.
   (b) Notwithstanding the board's closing of, the elimination of or
reduction in the level of services provided by, or the leasing,
selling, or transfer of management of, a county facility subsequent
to January 1, 1975, the county shall  fulfill its duty to provide
care to all indigent people, either directly through county
facilities or indirectly through alternative means.
   (1) Where the county duty is fulfilled by a contractual
arrangement with a private facility or individual, the facility or
individual shall assume the county's full obligation to provide care
to those who cannot afford it, and make their services available to
Medi-Cal and Medicare recipients.
   (2) Where the county duty is fulfilled by alternative means, the
facility or individual providing services shall be in compliance with
Sections 441.18 and 1277.
   (3) The board shall designate an agency to provide  a 24-hour
information service that can give eligible people immediate
information on the available services and access to them, and an
agency to receive and respond to complaints from people eligible for
services under this chapter.  The designated agency may be the agency
that operates the facility.  This subdivision applies only in
instances in which there is (1) a closing of, (2) an elimination or
reduction in the level of services provided by, or (3) the leasing,
selling, or transfer of, a county facility.
   (4) The board shall arrange for all facilities or individuals
contracting to provide services to indigent people to be listed in
the local telephone directory under county listings, and shall
specify therein that the facilities or individuals fulfill the
obligations of county facilities.
   (5) Section 25371 of the Government Code does not relieve the
county of the obligation to comply with this section.
  SEC. 102.  Section 1502.6 of the Health and Safety Code is amended
to read:
   1502.6.  The department shall deny a private adoption agency a
license, or revoke an existing private adoption agency license,
unless the applicant or licensee demonstrates that it currently and
continuously employs either an executive director or a supervisor who
has had at least five years of full-time social work employment in
the field of child welfare as described in Chapter 5 (commencing with
Section 16500) of Part 4 of Division 9 of the Welfare and
Institutions Code or Division 13 (commencing with Section 8500) of
the Family Code, two years of which shall have been spent performing
adoption social work services in either the department or a licensed
California adoption agency.
  SEC. 103.  Section 1522 of the Health and Safety Code is amended to
read:
   1522.  The Legislature recognizes the need to generate timely and
accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a community
care facility, foster family home, or certified family home.
Therefore, the Legislature supports the use of fingerprint live-scan
technology, as identified in the long-range plan of the Department of
Justice for fully automating the processing of fingerprints and
other data by the year 1999, otherwise known as the California Crime
Information Intelligence System (CAL-CII), to be used for applicant
fingerprints.  It is the intent of the Legislature in enacting this
section to require the fingerprints of those individuals whose
contact with community care clients may pose a risk to the clients'
health and safety.
   (a) Before issuing a license or special permit to any person or
persons to operate or manage a community care facility, the State
Department of Social Services shall secure from an appropriate law
enforcement agency a criminal record to determine whether the
applicant or any other person specified in subdivision (b) has ever
been convicted of a crime other than a minor traffic violation or
arrested for any crime specified in Section 290 of the Penal Code,
for violating Section 245 or 273.5, subdivision (b) of Section 273a
or, prior to January 1, 1994, paragraph (2) of Section 273a of the
Penal Code, or for any crime for which the department cannot grant an
exemption if the person was convicted and the person has not been
exonerated.  That criminal history information shall include the full
criminal record of any of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.  No fee
shall be charged by the Department of Justice or the State Department
of Social Services for the fingerprinting of an applicant for a
license or special permit to operate a facility providing nonmedical
board, room, and care for six or fewer children or for obtaining a
criminal record of the applicant pursuant to this section.  The
following shall apply to the criminal record information:
   (1) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (2) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), is
awaiting trial for a crime other than a minor traffic violation, the
State Department of Social Services shall cease processing the
application until the conclusion of the trial.
   (3) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (4) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (g).
   (b) In addition to the applicant, this section shall be applicable
to criminal convictions of the following persons:
   (1) Adults responsible for administration or direct supervision of
staff.
   (2) Any person, other than a client, residing in the facility.
   (3) Any person who provides client assistance in dressing,
grooming, bathing, or personal hygiene.  Any nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section.  A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exception shall provide one copy of his or
her certification, prior to providing care, to the adult community
care facility.  The facility shall maintain the copy of the
certification on file as long as care is being provided by the
certified nurse assistant or certified home health aide at the
facility.  Nothing in this paragraph restricts the right of the
department to exclude a certified nurse assistant or certified home
health aide from a licensed community care facility pursuant to
Section 1558.
   (4) Any staff person or employee who has frequent and routine
contact with the clients.  In determining who has frequent contact,
any volunteer who is in the facility shall be exempt unless the
volunteer is used to replace or supplement staff in providing direct
care and supervision of clients.  In determining who has routine
contact, staff and employees under direct onsite supervision and who
are not providing direct care and supervision or who have only
occasional or intermittent contact with clients shall be exempt.
   (5) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
like capacity.
   (6) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation.  The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (c) (1) Subsequent to initial licensure, any person specified in
subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a community care
facility, be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal convictions.  The licensee shall
submit these fingerprints to the Department of Justice not later
than four calendar days following employment, residence, or initial
presence in the community care facility.  These fingerprints shall be
on a card provided by the State Department of Social Services for
the purpose of obtaining a permanent set of fingerprints.
Fingerprints not submitted to the Department of Justice, as required
in this section, shall result in the citation of a deficiency and the
fingerprints shall then be submitted to the State Department of
Social Services for processing.  Upon request of the licensee, who
shall enclose a self-addressed stamped postcard for this purpose, the
Department of Justice shall verify receipt of the fingerprints.
   (2) Within 30 calendar days of the receipt of the fingerprints,
the Department of Justice shall notify the State Department of Social
Services of the criminal record information, as provided for in
subdivision (a).  If no criminal record information has been
recorded, the Department of Justice shall provide the licensee and
the State Department of Social Services with a statement of that fact
within 15 calendar days of receipt of the fingerprints.  If new
fingerprints are required for processing, the Department of Justice
shall, within 15 calendar days from the date of receipt of the
fingerprints, notify the licensee that the fingerprints were
illegible.
   (3) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision.  If it is determined by the State Department of Social
Services, on the basis of the fingerprints submitted to the
Department of Justice, that the person has been convicted of, or is
awaiting trial for, a sex offense against a minor, or has been
convicted for an offense specified in Section 243.4, 273a, or 273d or
subdivision (a) or (b) of Section 368 of the Penal Code, or a
felony, the State Department of Social Services shall notify the
licensee of its obligation to act immediately to terminate the person'
s employment, remove the person from the community care facility, or
bar the person from entering the community care facility.  The State
Department of Social Services may subsequently grant an exemption
pursuant to subdivision (g).  If the conviction or arrest was for
another crime, except a minor traffic violation, the licensee shall,
upon notification by the State Department of Social Services, act
immediately to either (1) terminate the person's employment, remove
the person from the community care facility, or bar the person from
entering the community care facility or (2) seek an exemption
pursuant to subdivision (g).  The State Department of Social Services
shall determine whether the person will be allowed to remain in the
facility until a decision on the exemption is rendered.  A licensee's
failure to comply with the department's prohibition of employment,
contact with clients, or presence in the facility as required by this
paragraph shall be grounds for disciplining the licensee pursuant to
Section 1550.
   (4) The department may issue an exemption on its own motion
pursuant to subdivision (g) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions.  The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (5) Concurrently with notifying the licensee pursuant to paragraph
(3), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (g).  The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (3).
   (d) (1) Before issuing a license, special permit, or certificate
of approval to any person or persons to operate or manage a foster
family home or certified family home as described in Section 1506,
the State Department of Social Services or other approving authority
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in Section 290
of the Penal Code or arrested for violating Section 245 or 273.5,
subdivision (b) of Section 273a or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and has not been exonerated.  That criminal history
information shall include the full criminal record, if any, of those
persons.  No fee shall be charged by the Department of Justice or the
State Department of Social Services for the fingerprinting of an
applicant for a license, special permit, or certificate of approval
described in this subdivision.  The record, if any, shall be taken
into consideration when evaluating a prospective applicant.  The
following shall apply to the criminal record information:
   (A) If the applicant or other persons specified in subdivision (b)
have convictions that would make the applicant's home unfit as a
foster family home or a certified family home, the license, special
permit, or certificate of approval shall be denied.
   (B) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services or other approving authority shall
cease processing the application until the conclusion of the trial.
   (C) For the purposes of this subdivision, a criminal record
clearance provided under Section 8712 of the Family Code may be used
by the department or other approving agency.
   (2) Any person specified in this subdivision shall, as a part of
the application, be fingerprinted and sign a declaration under
penalty of perjury regarding any prior criminal convictions or
arrests for any crime against a child, spousal or cohabitant abuse,
or any crime for which the department cannot grant an exemption if
the person was convicted and shall submit these fingerprints to the
licensing agency or other approving authority.
   (3) The foster family agency shall obtain fingerprints from
certified home applicants and from persons specified in subdivision
(b) and shall submit them directly to the Department of Justice.
Within five working days of the receipt of the criminal record or
information regarding criminal convictions from the Department of
Justice, the department shall notify the applicant of any criminal
arrests or convictions.  If no arrests or convictions are recorded,
the Department of Justice shall provide the foster family agency with
a statement of that fact concurrent with providing the information
to the State Department of Social Services.
   (4) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (5) If the State Department of Social Services finds after
licensure or the granting of the certificate of approval that the
licensee, certified foster parent, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license or certificate of
approval may be revoked by the department or the foster family
agency, whichever is applicable, unless the director grants an
exemption pursuant to subdivision (g).  A licensee's failure to
comply with the department's prohibition of employment, contact with
clients, or presence in the facility as required by paragraph (3) of
subdivision (c) shall be grounds for disciplining the licensee
pursuant to Section 1550.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client.  The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) For purposes of this section or any other provision of this
chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.  Any action that the
State Department of Social Services is permitted to take following
the establishment of a conviction may be taken when the time for
appeal has elapsed, or when the judgment of conviction has been
affirmed on appeal, or when an order granting probation is made
suspending the imposition of sentence, notwithstanding a subsequent
order pursuant to Sections 1203.4 and 1203.4a of the Penal Code
permitting the person to withdraw his or her plea of guilty and to
enter a plea of not guilty, or setting aside the verdict of guilty,
or dismissing the accusation, information, or indictment.  For
purposes of this section or any other provision of this chapter, the
record of a conviction, or a copy thereof certified by the clerk of
the court or by a judge of the court in which the conviction
occurred, shall be conclusive evidence of the conviction.  For
purposes of this section or any other provision of this chapter, the
arrest disposition report certified by the Department of Justice, or
documents admissible in a criminal action pursuant to Section 969b of
the Penal Code, shall be prima facie evidence of the conviction,
notwithstanding any other provision of law prohibiting the admission
of these documents in a civil or administrative action.
   (g) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraphs (1) and (4) of subdivision (a), or for a
license, special permit, or certificate of approval as specified in
paragraphs (4) and (5) of subdivision (d), or for employment,
residence, or presence in a community care facility as specified in
paragraphs (3), (4), and (5) of subdivision (c), if the director has
substantial and convincing evidence to support a reasonable belief
that the applicant and the person convicted of the crime, if other
than the applicant, are of such good character as to justify issuance
of the license or special permit or granting an exemption for
purposes of subdivision (c).  Except as otherwise provided in this
subdivision, no exemption shall be granted pursuant to this
subdivision if the conviction was for an offense specified in Section
220, 243.4, or 264.1, subdivision (a) of Section 273a or, prior to
January 1, 1994, paragraph (1) of Section 273a, Section 273d, 288, or
289, subdivision (a) of Section 290, or subdivision (a) or (b) of
Section 368 of the Penal Code, or was a conviction of another crime
against an individual specified in subdivision (c) of Section 667.5
of the Penal Code.  The director may grant an exemption if the
employee or prospective employee, who was convicted of a crime
against an individual prescribed in paragraph (1), (2), (7), or (8)
of subdivision (c) of Section 667.5 of the Penal Code, has been
rehabilitated as provided in Section 4852.03 of the Penal Code, has
maintained the conduct required in Section 4852.05 of the Penal Code
for at least 10 years, and has the recommendation of the district
attorney representing the employee's county of residence, or if the
employee or prospective employee has received a certificate of
rehabilitation pursuant to Chapter 3.5 (commencing with Section
4852.01) of Title 6 of Part 3 of the Penal Code.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with the requirements of Section 1558.
   (h) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
records clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another state licensing district office.
   (2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearance to be transferred.
   (i) The full criminal record obtained for purposes of this section
may be used by the department or by a licensed adoption agency as a
clearance required for adoption purposes.
   (j) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1558, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a result
of that denial or termination.
   (k) (1) In order to expedite the current criminal record clearance
and fingerprint process of the Department of Justice pursuant to
subdivisions (a) and (c), the Department of Justice shall complete
work on all of its current backlog of criminal records clearances for
community care facilities licensed by the State Department of Social
Services by July 1, 1995.
   (2) Effective January 1, 1995, the Department of Justice shall
complete all new requests for criminal record clearances for
community care facilities within 30 days of receipt.
   (3) The Department of Justice shall coordinate with the State
Department of Social Services to establish and implement an automated
live-scan processing system for fingerprints in two district offices
of the Community Care Licensing Division of the State Department of
Social Services by July 1, 1995.  These live-scan processing units
shall be connected to the main system at the Department of Justice by
July 1, 1996, and shall become part of that department's pilot
project in accordance with its long-range plan.  The State Department
of Social Services may charge a fee not to exceed five dollars ($5)
or the actual cost of processing a set of live-scan fingerprints.
   (4) The Department of Justice shall provide a report to the
Assembly Human Services Committee and to the Senate Health and Human
Services Committee by July 15, 1995, regarding the completion of
backlogged criminal record clearance requests pursuant to paragraph
(1) and the progress on implementing the automated live-scan
processing system in the two district offices pursuant to paragraph
(3).  The Department of Justice shall provide a report to the
Assembly Human Services Committee and to the Senate Health and Human
Services Committee by April 15, 1996, regarding the progress of the
implementation of the statewide CAL-CII system, the number of
requests for criminal clearances received pursuant to this section
during the previous year, the number of criminal record clearances
requested and completed pursuant to this section within a 17-day
"expedite" period or within the 30-day period required by paragraph
(2), and the number of requests and reasons for delays beyond the
30-day period.
  SEC. 104.  Section 1746 of the Health and Safety Code is amended to
read:
   1746.  For the purposes of this chapter, the following definitions
apply:
   (a) "Bereavement services" means those services available to the
surviving family members for a period of at least one year after the
death of the patient, including an assessment of the needs of the
bereaved family and the development of a care plan that meets these
needs, both prior to and following the death of the patient.
   (b) "Hospice" means a specialized form of interdisciplinary health
care that is designed to provide palliative care, alleviate the
physical, emotional, social, and spiritual discomforts of an
individual who
is experiencing the last phases of life due to the existence of a
terminal disease, and provide supportive care to the primary care
giver and the family of the hospice patient, and that meets all of
the following criteria:
   (1) Considers the patient and the patient's family, in addition to
the patient, as the unit of care.
   (2) Utilizes an interdisciplinary team to assess the physical,
medical, psychological, social, and spiritual needs of the patient
and the patient's family.
   (3) Requires the interdisciplinary team to develop an overall plan
of care and to provide coordinated care that emphasizes supportive
services, including, but not limited to, home care, pain control, and
limited inpatient services.  Limited inpatient services are intended
to ensure both continuity of care and appropriateness of services
for those patients who cannot be managed at home because of acute
complications or the temporary absence of a capable primary care
giver.
   (4) Provides for the palliative medical treatment of pain and
other symptoms associated with a terminal disease, but does not
provide for efforts to cure the disease.
   (5) Provides for bereavement services following death to assist
the family in coping with social and emotional needs associated with
the death of the patient.
   (6) Actively utilizes volunteers in the delivery of hospice
services.
   (7) To the extent appropriate, based on the medical needs of the
patient, provides services in the patient's home or primary place of
residence.
   (c) "Inpatient care arrangements" means arranging for those short
inpatient stays that may become necessary to manage acute symptoms or
because of the temporary absence, or need for respite, of a capable
primary care giver.  The hospice shall arrange for these stays,
ensuring both continuity of care and the appropriateness of services.

   (d) "Medical direction" means those services provided by a
licensed physician and surgeon who is charged with the responsibility
of acting as a consultant to the interdisciplinary team, a
consultant to the patient's attending physician and surgeon, as
requested, with regard to pain and symptom management, and a liaison
with physicians and surgeons in the community.
   (e) "An interdisciplinary team" means the hospice care team that
includes, but is not limited to, the patient and patient's family, a
physician and surgeon, a registered nurse, a social worker, a
volunteer, and a spiritual care giver.  The team shall be coordinated
by a registered nurse and shall be under medical direction.  The
team shall meet regularly to develop and maintain an appropriate plan
of care.
   (f) "Plan of care" means a written plan developed by the attending
physician and surgeon, the medical director or physician and surgeon
designee, and the interdisciplinary team that addresses the needs of
a patient and family admitted to the hospice program.  The hospice
shall retain overall responsibility for the development and
maintenance of the plan of care and quality of services delivered.
   (g) "Skilled nursing services" means nursing services provided by
or under the supervision of a registered nurse under a plan of care
developed by the interdisciplinary team and the patient's physician
and surgeon to a patient and his or her family that pertain to the
palliative, supportive services required by patients with a terminal
illness.  Skilled nursing services include, but are not limited to,
patient assessment, evaluation and case management of the medical
nursing needs of the patient, the performance of prescribed medical
treatment for pain and symptom control, the provision of emotional
support to both the patient and his or her family, and the
instruction of care givers in providing personal care to the patient.
Skilled nursing services shall provide for the continuity of
services for the patient and his or her family.  Skilled nursing
services shall be available on a 24-hour on-call basis.
   (h) "Social service/counseling services" means those counseling
and spiritual care services that assist the patient and his or her
family to minimize stresses and problems that arise from social,
economic, psychological, or spiritual needs by utilizing appropriate
community resources, and maximize positive aspects and opportunities
for growth.
   (i) "Terminal disease" or "terminal illness" means a medical
condition resulting in a prognosis of life of one year or less, if
the disease follows its natural course.
   (j) "Volunteer services" means those services provided by trained
hospice volunteers who have agreed to provide service under the
direction of a hospice staff member who has been designated by the
hospice to provide direction to hospice volunteers.  Hospice
volunteers may be used to provide support and companionship to the
patient and his or her family during the remaining days of the
patient's life and to the surviving family following the patient's
death.
   (k) "Multiple location" means a location or site from which a
hospice makes available basic hospice services within the service
area of the parent agency.  A multiple location shares
administration, supervision, policies and procedures, and services
with the parent agency in a manner that renders it unnecessary for
the site to independently meet the licensing requirements.
   (l) "Home health aide" has the same meaning as set forth in
subdivision (c) of Section 1727.
   (m) "Home health aide services" means those services described in
subdivision (d) of Section 1727 that provide for the personal care of
the terminally ill patient and the performance of related tasks in
the patient's home in accordance with the plan of care in order to
increase the level of comfort and to maintain personal hygiene and a
safe, healthy environment for the patient.
   (n) "Parent agency" means the part of the hospice that is licensed
pursuant to this chapter and that develops and maintains
administrative controls of multiple locations.  All services provided
by the multiple location and parent agency are the responsibility of
the parent agency.
  SEC. 105.  Section 1771.9 of the Health and Safety Code is amended
to read:
   1771.9.  (a) (1) The Legislature finds and declares all of the
following:
   (A) The residents of continuing care retirement communities have a
unique and valuable perspective on the operations of and services
provided in the community in which they live.
   (B) Resident input into decisions made by the provider is an
important factor in creating an environment of cooperation, reducing
conflict, and ensuring timely response to and resolution of issues
that may arise.
   (C) Continuing care retirement communities are strengthened when
residents know that their views are heard and respected.
   (2) The Legislature encourages continuing care retirement
communities to exceed the minimum resident participation requirements
established by this section by, among other things, the following:
   (A) Encouraging residents to form a resident council, and
assisting the residents, resident council, and resident association
to keep informed about the operation of the community.
   (B) Encouraging residents of a community or their elected
representatives to select residents to participate as board members
of the provider.
   (C) Quickly and fairly resolving any dispute, claim, or grievance
arising between a resident and the community.
   (b) The governing body of a provider, or the designated
representative of the provider, shall hold, at a minimum, semiannual
meetings with the residents of the continuing care retirement
community, or a committee of residents, for the purpose of the free
discussion of subjects including, but not limited to, income,
expenditures, and financial trends and issues as they apply to the
community and proposed changes in policies, programs, and services.
Nothing in this section precludes a provider from taking action or
making a decision at any time, without regard to the meetings
required under this subdivision.
   (c) At least 30 days prior to the implementation of any increase
in the monthly care fee, the designated representative of the
provider shall convene a meeting, to which all residents shall be
invited, for the purpose of discussing the reasons for the increase,
the basis for determining the amount of the increase, and the data
used for calculating the increase.  This meeting may coincide with
the semiannual meetings provided for in subdivision (b).
   (d) Residents shall be provided at least 14 days' advance notice
of each meeting provided for in subdivisions (b) and (c).  The notice
of, and the agenda for, the meeting shall be posted in a conspicuous
place in the community at least 14 days prior to the meeting.  The
agenda and accompanying materials shall be available to residents of
the community upon request.
   (e) (1) The governing body of a provider that is not part of a
multifacility organization with more than one continuing care
retirement community in the state shall accept at least one resident
of the continuing care retirement community it operates to
participate as a nonvoting resident representative to the provider's
governing body.
   (2) In a multifacility organization having more than one
continuing care retirement community in the state, the governing body
of the multifacility organization shall elect either (A) to have at
least one nonvoting resident representative to the provider's
governing body for each California-based continuing care retirement
community that the provider operates or (B) to have a
resident-elected committee composed of representatives of the
residents of each California-based continuing care retirement
community that the provider operates select or nominate at least one
nonvoting resident representative to the provider's governing body
for every three California-based continuing care retirement
communities, or fraction thereof, that the provider operates.
   (f) (1) In order to encourage innovative and alternative models of
resident involvement, a resident selected pursuant to subdivision
(e) to participate as a resident representative to the provider's
governing body may, at the option of the resident council or
association, be selected in any one of the following ways:
   (A) By a majority vote of the resident council or resident
association of a provider or by a majority vote of a resident-elected
committee of residents of a multifacility organization.
   (B) If no resident council or resident association exists, any
resident may organize a meeting of the majority of the residents of
the community to select or nominate residents to represent them
before the governing body.
   (C) Any other method designated by the resident council or
resident association.
   (2) The residents' council, association, or organizing resident,
or in the case of a multifacility organization, the resident-elected
committee of residents, shall give residents of the community at
least 30 days' advance notice of the meeting to select a resident
representative and shall post the notice in a conspicuous place at
the community.
   (g) Except as provided in subdivision (h), the resident
representative shall receive the same notice of board meetings, board
packets, minutes, and other materials as members and shall be
permitted to attend, speak, and participate in all meetings of the
board.
   (h) Notwithstanding subdivision (g), the governing body may
exclude resident representatives from its executive sessions and from
receiving board materials to be discussed during executive sessions.
  However, resident representatives shall be included in executive
sessions and shall receive all board materials to be discussed during
executive sessions related to discussions of the annual budgets,
increases in monthly care fees, indebtedness, and expansion of new
and existing facilities.
   (i) The provider shall pay all reasonable travel costs for the
resident representative.
   (j) The provider shall disclose to prospective tenants, in
writing, the extent of resident involvement with the board.
   (k) This section does not prohibit a provider from exceeding the
minimum resident participation requirements of this section by, for
example, having more resident meetings or more resident
representatives to the board than required or by having one or more
residents on the provider's governing body who are selected with the
active involvement of residents.
   (l) On or before January 1, 2001, the Continuing Care Contracts
Committee of the department established pursuant to Section 1777
shall evaluate and report to the Legislature on the implementation of
this section.
  SEC. 106.  Section 1797.191 of the Health and Safety Code is
amended to read:
   1797.191.  (a) The authority shall establish minimum standards for
the training in pediatric first aid, pediatric cardiopulmonary
resuscitation (CPR), and preventive health practices required by
Section 1596.866.
   (b) (1) The authority shall establish a process for the ongoing
review and approval of training programs in pediatric first aid,
pediatric CPR, and preventive health practices as specified in
paragraph (2) of subdivision (a) of Section 1596.866 to ensure that
those programs meet the minimum standards established pursuant to
subdivision (a).  The authority shall charge fees equal to its costs
incurred for the pediatric first aid and pediatric CPR training
standards program and for the ongoing review and approval of these
programs.
   (2) The authority shall establish, in consultation with experts in
pediatric first aid, pediatric CPR, and preventive health practices,
a process to ensure the quality of the training programs, including,
but not limited to, a method for assessing the appropriateness of
the courses and the qualifications of the instructors.
   (c) (1) The authority may charge a fee equal to its costs incurred
for the preventive health practices program and for the initial
review and approval and renewal of approval of the program.
   (2) If the authority chooses to establish a fee process based on
the use of course completion cards for the preventive health
practices program, the cost shall not exceed seven dollars ($7) per
card for each training participant until January 1, 2001, at which
time the authority may evaluate its administrative costs.  After
evaluation of the costs, the authority may establish a new fee scale
for the cards so that revenue does not exceed the costs of the
ongoing review and approval of the preventive health practices
training.
   (d) For the purposes of this section, "training programs" means
programs that apply for approval by the authority to provide the
training in pediatric first aid, pediatric CPR, or preventive health
practices as specified in paragraph (2) of subdivision (a) of Section
1596.866.  Training programs include all affiliated programs that
also provide any of the authority-approved training required by this
division. "Affiliated programs" means programs that are overseen by
persons or organizations that have an authority-approved training
program in pediatric first aid, pediatric CPR, or preventive health
practices.  Affiliated programs also include programs that have
purchased an authority-approved training program in pediatric first
aid, pediatric CPR, or preventive health practices.  Training
programs and their affiliated programs shall comply with this
division and with the regulations adopted by the authority pertaining
to training programs in pediatric first aid, pediatric CPR, or
preventive health practices.
   (e) The director of the authority may, in accordance with
regulations adopted by the authority, deny, suspend, or revoke any
approval issued under this division or may place any approved program
on probation, upon the finding by the director of the authority of
an imminent threat to the public health and safety as evidenced by
the occurrence of any of the actions listed in subdivision (f).
   (f) Any of the following actions shall be considered evidence of a
threat to the public health and safety, and may result in the
denial, suspension, probation, or revocation of a program's approval
or application for approval pursuant to this division.
   (1) Fraud.
   (2) Incompetence.
   (3) The commission of any fraudulent, dishonest, or corrupt act
that is substantially related to the qualifications, functions, and
duties of training program directors and instructors.
   (4) Conviction of any crime that is substantially related to the
qualifications, functions, and duties of training program directors
and instructors.  The record of conviction or a certified copy of the
record shall be conclusive evidence of the conviction.
   (5) Violating or attempting to violate, directly or indirectly, or
assisting in or abetting the violation of, or conspiring to violate,
this division or the regulations promulgated by the authority
pertaining to the review and approval of training programs in
pediatric first aid, pediatric CPR, and preventive health practices
as specified in paragraph (2) of subdivision (a) of Section 1596.866.

   (g) In order to ensure that adequate qualified training programs
are available to provide training in the preventive health practices
course to all persons who are required to have that training, the
authority may, after approval of the Commission on Emergency Medical
Services pursuant to Section 1799.50, establish temporary standards
for training programs for use until permanent standards are adopted
pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (h) Persons who, prior to the date on which the amendments to this
section enacted in 1998 become operative, have completed a course or
courses in preventive health practices as specified in subparagraph
(C) of paragraph (2) of subdivision (a) of Section 1596.866, and have
a certificate of completion card for a course or courses in
preventive health practices, or certified copies of transcripts that
identify the number of hours and the specific course or courses taken
for training in preventive health practices shall be deemed to have
met the requirement for training in preventive health practices.
  SEC. 107.  Section 18020 of the Health and Safety Code is amended
to read:
   18020.  (a) Except as provided in Section 18027.3, and except as
provided by the National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. Sec. 5401 et seq.), as it applies
to the manufacture of new manufactured housing, the department shall
enforce this part and the rules and regulations adopted pursuant to
this part.
   (b) The department may, at the department's sole option, enforce
Chapter 4 (commencing with Section 18025) and the rules and
regulations adopted pursuant to Chapter 4 through department-approved
third-party entities.  The department shall adopt regulations for
the approval of third-party entities, including, but not limited to,
all of the following criteria:
   (1) Freedom from any conflict of interest.
   (2) Qualifications of personnel.
   (3) Frequency of inspections or monitorings of manufacturer
quality control.
   (4) Involvement in collusive or fraudulent actions related to the
performance of activities required by Section 18013.2.
   (5) Any other conditions of operation that the department may
reasonably require.
   (c) The department may require rotation of third-party entities
performing inspection services for any manufacturing facility within
the state to prevent the third-party entity from either performing
inspections within the same facility for more than 365 calendar days
or performing inspections for any facility when the third-party
entity performed inspection services within the previous 365 calendar
days.
   (d) The department shall monitor the performance of third-party
entities approved pursuant to subdivision (b) and shall require
periodic reports in writing containing information that the
department may reasonably require to determine compliance with the
conditions of the department's approval.
   (1) When the department receives information about an alleged
inadequacy in the performance of a third-party entity, including any
involvement in collusive or fraudulent actions related to the
performance of activities required by Section 18013.2, it shall
consider the information in its monitoring efforts and make a
determination about the validity of the alleged inadequacy in a
timely manner.
   (2) When the department determines, either through its monitoring
efforts or through information provided by any other person, that an
approved third-party entity has failed to perform according to the
conditions of approval, the department may withdraw approval by
forwarding written notice to the approved third-party entity by
registered mail to its address of record, briefly summarizing the
cause for the department's decision.
   (3) A third-party entity, upon having its approval withdrawn by
the department, may request a hearing before the director of the
department.  The request for hearing shall be in writing and either
delivered or postmarked prior to midnight on the 10th calendar day
from the date of the department's notice.
   (4) The department, upon timely receipt of a written request for
hearing, shall, within 30 calendar days, schedule a hearing before
the director or his or her agent.  All hearings pursuant to this
subdivision shall be held in the department's Sacramento offices and
the decision of the director shall be final.
   (5) A third-party entity whose approval has been withdrawn by the
department shall not be permitted to reapply for the department's
approval pursuant to subdivision (b) for a period of one year from
the date that the approval was withdrawn by the department.
   (6) A third-party entity whose approval has been withdrawn more
than once by the department shall not be permitted to reapply for
department approval pursuant to subdivision (b) for a period of not
less than one year from the date that the department's approval was
last withdrawn.
   (7) No third-party entity shall perform the activities required by
Section 18013.2 unless it has the approval of the department.
   (e) (1) Upon finding a violation of subdivision (b) on the part of
a third-party entity, the director shall issue citations and levy
administrative fines.  Each citation and fine assessment shall be in
writing and describe the particulars for the citation.  The citation
and fine assessment shall be issued not later than six months after
discovery of the violation.
   (2) The fine for a first violation shall be at least five hundred
dollars ($500) and shall not exceed one thousand dollars ($1,000).
The fine for a second violation shall be at least two thousand
dollars ($2,000) and shall not exceed four thousand dollars ($4,000).
  The fine for a third violation shall be at least five thousand
dollars ($5,000), and shall not exceed ten thousand dollars
($10,000).  The fines shall be assessed for each day the violation
occurs.  If a third-party entity has been cited more than three times
during a 365-day period, the approval to conduct inspections on
behalf of the department shall be suspended for a minimum of one
year.
   (3) The third-party entity may request an administrative hearing
on the citation or fine.  If the party fails to request a hearing
within 30 days and does not pay the fine, the approval to perform
inspections shall be automatically revoked, until the time that the
department finds that the circumstances that led to the citation have
been corrected and the fines have been paid.
   (4) Upon review of the findings from the administrative hearing,
the director may modify, rescind, or uphold the citation and fine
assessment.  The decision of the director shall be served by regular
mail.
   (5) The fines shall be paid into the Housing and Community
Development Fund, which is hereby created in the State Treasury, and
shall be used, when appropriated by the Legislature, to offset the
department's costs to administer this part.
   (f) The remedies provided in this part to any aggrieved party are
not exclusive and shall not preclude the applicability of any other
provision of law.
  SEC. 108.  Section 18025.5 of the Health and Safety Code is amended
to read:
   18025.5.  (a) Pursuant to the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. Sec. 5401 et
seq.), the department may assume responsibility for the enforcement
of manufactured home and mobilehome construction and safety standards
relating to any issue with respect to which a federal standard has
been established.  The department may adopt regulations to ensure
acceptance by the Secretary of Housing and Urban Development of
California's plan for the administration and enforcement of federal
manufactured home and mobilehome safety and construction standards.
   (b) The department may conduct inspections and investigations that
it determines may be necessary to secure enforcement of this part
and regulations adopted pursuant to this part.
   (c) Subdivision (b) shall not apply to the enforcement of Section
18027.3 unless the department determines that there is a compelling
reason to exercise oversight in the inspection of recreational
vehicles or park trailers at a factory, in which case the department
may investigate the inspection, or conduct a department inspection,
on recreational vehicles or park trailers at a factory and utilize
any means necessary to collect a fee from the manufacturer for the
cost of the department investigation or inspection.
   (d) For the purposes of enforcement of this part and the related
regulations, persons duly designated by the director of the
department, upon presenting appropriate credentials to the owner,
operator, or agent in charge, may do both of the following:
   (1) Enter, at reasonable times and without advance notice, any
factory, warehouse, sales lot, or establishment in which manufactured
homes, mobilehomes, commercial coaches, or special purpose
commercial coaches are manufactured, stored, held for sale, sold, or
offered for sale, rent, or lease.
   (2) Inspect, at reasonable times and within reasonable limits and
in a reasonable manner, any factory, warehouse, sales lot, or
establishment, and inspect the books, papers, records, and documents
to ensure compliance with this part.
  SEC. 109.  Section 25989.1 of the Health and Safety Code is amended
to read:
   25989.1.  (a) Any traveling circus or carnival that performs in
this state shall do both of the following:
   (1) Notify each entity that provides animal control services for a
city, county, or city and county in which the traveling circus or
carnival intends to perform of its intent to perform within that
jurisdiction.  Notice shall be given at least 14 days prior to the
first performance in that city, county, or city and county.
   (2) Provide each entity that provides animal control services for
a city, county, or city and county in which the traveling circus or
carnival intends to perform with a schedule of its performances in
California.
   (b) For the purposes of this chapter, "traveling circus or
carnival" does not include any fair regulated under Chapter 4
(commencing with Section 19400) of Division 8 of the Business and
Professions Code, or any rodeo, horse, or school event.
   (c) Any violation of subdivision (a) shall be punishable by a fine
of not less than five hundred dollars ($500) and not more than two
thousand dollars ($2,000) for a first violation, and not less than
one thousand five hundred dollars ($1,500) and not more than five
thousand dollars ($5,000) for any subsequent violation.
  SEC. 110.  Section 33298 of the Health and Safety Code is repealed.

  SEC. 111.  Section 33392 of the Health and Safety Code is amended
to read:
   33392.  Notwithstanding any other provision of this part, an
agency with the approval of the legislative body of the community may
acquire, by negotiation or other means, real property in a project
area at any time after formulation of the preliminary plan for the
area by the planning commission, and prior to the adoption of the
redevelopment plan by the legislative body of the community,
provided, however, that an agency may not exercise the power of
eminent domain in connection with that acquisition prior to adoption
of the redevelopment plan.
  SEC. 112.  Section 33492.22 of the Health and Safety Code is
amended to read:
   33492.22.  (a) Notwithstanding the time limit in subdivision (b)
of Section 33492.18, the Planning Commission and the Redevelopment
Commission of the City and County of San Francisco shall certify an
environmental impact report for the Hunter's Point Shipyard
Redevelopment Plan within 30 months after the effective date of the
ordinance adopting the redevelopment plan.
   (b) The following provisions shall apply to the approval of
projects that implement a redevelopment plan authorized by this
article:
   (1) For 18 months after the effective date of the ordinance
adopting the redevelopment plan, or until the certification of an
environmental impact report for the redevelopment plan if the report
is certified during that 18-month period, subdivision (c) of Section
33492.18 shall apply.
   (2) If an environmental impact report for the redevelopment plan
is not certified within 18 months after the effective date of the
ordinance adopting the plan, then during the succeeding 12 months or
until the certification of an environmental impact report if the
report is certified during that 12-month period, no project, as
defined in Section 21065 of the Public Resources Code, that
implements the redevelopment plan shall be approved by the agency or
the community unless any of the following occurs:
   (A) The agency or the community has approved a negative
declaration or certified an environmental impact report, or has
certified a subsequent or supplemental environmental impact report,
for the project before the expiration of the 18-month period provided
in Section 33492.18.
   (B) The agency or the community has certified a subsequent or
supplemental environmental impact report for the project where the
environmental impact report for the project was certified before the
expiration of the 18-month period provided in Section 33492.18.
   (C) The agency or the community complies with Chapter 4.5
(commencing with Section 21156) of Division 13 of the Public
Resources Code for subsequent projects described in a master
environmental impact report as being within the scope of the report,
and that master environmental impact report was certified before the
expiration of the 18-month period provided in Section 33492.18.
   (D) The project is categorically exempt pursuant to Article 19
(commencing with Section 15300) of Chapter 3 of Division 6 of Title
14 of the California Code of Regulations.
  SEC. 113.  Section 44015 of the Health and Safety Code is amended
to read:
   44015.  (a) A licensed smog check station shall not issue a
certificate of compliance, except as authorized by this chapter, to
any vehicle that meets the following criteria:
   (1) A vehicle that has been tampered with.
   (2) A vehicle that, prior to repairs, has been initially
identified by the smog check station as a gross polluter.
Certification of a gross polluting vehicle shall be conducted by a
designated test-only facility, or a test-and-repair station that is
both licensed and certified pursuant to Sections 44014 and 44014.2
and is participating in the pilot program pursuant to subparagraph
(B) of paragraph (2) of subdivision (g) of Section 44014.5.
   (3) A vehicle described in subdivision (c).
   (b) If a vehicle meets the requirements of Section 44012, a smog
check station licensed to issue certificates shall issue a
certificate of compliance or a certificate of noncompliance.
   (c) (1) A repair cost waiver shall be issued, upon request of the
vehicle owner, by an entity authorized to perform referee functions
for a vehicle that has been properly tested but does not meet the
applicable emission standards when it is determined that no
adjustment or repair can be made that will reduce emissions from the
inspected motor vehicle without exceeding the applicable repair cost
limit established under Section 44017 and that every defect specified
by paragraph (2) of subdivision (a) of Section 43204, and by
paragraphs (2) and (3) of subdivision (a) of Section 43205, has been
corrected.  A repair cost waiver issued pursuant to this paragraph
shall be accepted in lieu of a certificate of compliance for the
purposes of compliance with Section 4000.3 of the Vehicle Code.  No
repair cost waiver shall exceed two years' duration.  No repair cost
waiver shall be issued until the vehicle owner has expended an amount
equal to the applicable repair cost limit specified in Section
44017.
   (2) An economic hardship extension shall be issued, upon request
of a qualified low-income motor vehicle owner, by an entity
authorized to perform referee functions, for a motor vehicle that has
been properly tested but does not meet the applicable emission
standards when it is determined that no adjustment or repair can be
made that will reduce emissions from the inspected motor vehicle
without exceeding the applicable repair cost limit, as established
pursuant to Section 44017.1, that every defect specified in paragraph
(2) of subdivision (a) of Section 43204, and in paragraphs (2) and
(3) of subdivision (a) of Section 43205, has been corrected, that the
low-income vehicle owner would suffer an economic hardship if the
extension is not issued, and that all appropriate emissions-related
repairs up to the amount of the applicable repair cost limit in
Section 44017.1 have been performed.
   (d) No repair cost waiver or economic hardship extension shall be
issued under any of the following circumstances:
   (1) If a motor vehicle was issued a repair cost waiver or economic
hardship extension in the previous biennial inspection of that
vehicle.  A repair cost waiver or economic hardship extension may be
issued to a motor vehicle owner only once for a particular motor
vehicle belonging to that owner.  However, a repair cost waiver or
economic hardship extension may be issued for a motor vehicle that
participated in a previous waiver or extension program prior to
January 1, 1998, as determined by the department.  For waivers or
extensions issued in the program operative on or after January 1,
1998, a waiver or extension may be issued for a motor vehicle only
once per owner.
   (2) Upon initial registration of all of the following:  a direct
import motor vehicle, a motor vehicle previously registered outside
this state, a dismantled motor vehicle pursuant to Section 11519 of
the Vehicle Code, a motor vehicle that has had an engine change, an
alternate fuel vehicle, and a specially constructed vehicle.
   (e) Unless the certificate is issued to a licensed automobile
dealer, a certificate of compliance or noncompliance shall be valid
for 90 days.  If the certificate is issued to a licensed automobile
dealer, the certificate shall be valid for 180 days.
   (f) A test may be made at any time within 90 days prior to the
date otherwise required.
  SEC. 114.  Section 50518 of the Health and Safety Code is amended
and renumbered to read:
   50514.5.  Notwithstanding the proviso to subitem (b) of Item 190
of the Budget Act of 1976, sixty thousand dollars ($60,000) of the
amount appropriated by subitem (b) of Item 190 of the Budget Act of
1976 shall not be allocated and expended as provided therein and
shall instead be allocated by the Department of Finance to the
Department of Housing and Community Development for a loan to a
community nonprofit organization for technical assistance in the
development of an industrial park in the city of Calexico.  The loan
shall be repaid upon the terms and conditions prescribed by the
Department of Finance.
  SEC. 115.  Section 111940 of the Health and Safety Code is amended
to read:
   111940.  (a) If any person violates any provision of Chapter 4
(commencing with Section 111950), Chapter 5 (commencing with Section
112150), Chapter 6 (commencing with Section 112350), Chapter 7
(commencing with Section 112500), Chapter 8 (commencing with Section
112650), Chapter 10 (commencing with Section 113025), or Article 3
(commencing with Section 113250) of Chapter 11 of this part, or
Chapter 4 (commencing with Section 108100) of Part 3, or any
regulation adopted pursuant to these provisions, the department may
assess a civil penalty against that person as provided by this
section.
   (b) The penalty may be in an amount not to exceed one thousand
dollars ($1,000) per day.  Each day that a violation continues shall
be considered a separate violation.
   (c) If, after examination of a possible violation and the facts
surrounding that possible violation, the department concludes that a
violation has occurred, the department may issue a complaint to the
person charged with the violation.  The complaint shall allege the
acts or failures to act that constitute the basis for the violation
and the amount of the penalty.  The complaint shall be served by
personal service or by certified mail and shall inform the person so
served of the right to a hearing.
   (d) Any person served with a complaint pursuant to subdivision (c)
of this section may, within 20 days after service of the complaint,
request a hearing by filing with the department a notice of defense.
A notice of defense is deemed to have been filed within the 20-day
period if it is postmarked within the 20-day period.  If a hearing is
requested by the person, it shall be conducted within 90 days after
the receipt by the department of the notice of defense.  If no notice
of defense is filed within 20 days after service of the complaint,
the department shall issue an order setting the penalty as proposed
in the complaint unless the department and the person have entered
into a settlement agreement, in which case the department shall issue
an order setting the penalty in the amount specified in the
settlement agreement.  When the person has not filed a notice of
defense or where the department and the person have entered into a
settlement agreement, the order shall not be subject to review by any
court or agency.
   (e) Any hearing required under this section shall be conducted
pursuant to the procedures specified in Section 100171, except to the
extent they are inconsistent with the specific requirements of this
section.
   (f) Orders setting civil penalties under this section shall become
effective and final upon issuance thereof, and payment shall be made
within 30 days of issuance.  A copy of the order shall be served by
personal service or by certified mail upon the person served with the
complaint.
   (g) Within 30 days after service of a copy of a decision issued by
the director after a hearing, any person so served may file with the
superior court a petition for writ of mandate for review of the
decision.  Any person who fails to file the petition within this
30-day period may not challenge the reasonableness or validity of the
decision or order of the director in any judicial proceeding brought
to enforce the decision or order or for other remedies.  Section
1094.5 of the Code of Civil Procedure shall govern any proceedings
conducted pursuant to this subdivision.  In all proceedings pursuant
to this subdivision, the court shall uphold the decision of the
director if the decision is based upon substantial evidence in the
whole record.  The filing of a petition for writ of mandate shall not
stay any corrective action required pursuant to the Miscellaneous
Food, Food Facility, and Hazardous Substances Act, as defined in
subdivision (b) of Section 27, or the accrual of any penalties
assessed pursuant to this section.  This subdivision does not
prohibit the court from granting any appropriate relief within its
jurisdiction.
   (h) The remedies under this section are in addition to, and do not
supersede, or limit, any and all other remedies, civil or criminal.

  SEC. 116.  Section 120440 of the Health and Safety Code is amended
to read:
   120440.  (a) For the purposes of this chapter, the following
definitions shall apply:
   (1) "Health care provider" means any person licensed pursuant to
Division 2 (commencing with Section 500) of the Business and
Professions Code or a clinic or health facility licensed pursuant to
Division 2 (commencing with Section 1200).
   (2) "Schools, child care facilities, and family child care homes"
means those institutions referred to in subdivision (b) of Section
120335, regardless of whether they directly provide immunizations to
patients or clients.
   (3) "WIC service provider" means any public or private nonprofit
agency contracting with the department to provide services under the
California Special Supplemental Food Program for Women, Infants, and
Children, as provided for in Article 2 (commencing with Section
123275) of Chapter 1 of Part 2 of Division 106.
   (4) "Health care plan" means a health care service plan as defined
in subdivision (f) of Section 1345 or an insurer as described in
Sections 10123.5 and 10123.55 of the Insurance Code, regardless of
whether the plan directly provides immunizations to patients or
clients.
   (b) Local health officers may operate immunization information
systems pursuant to their authority under Section 120175, in
conjunction with the Immunization Branch of the State Department of
Health Services.
   (c) Notwithstanding any other provision of law, unless a refusal
to permit recordsharing is made pursuant to subdivision (e), health
care providers may disclose the information set forth in paragraphs
(1) to (9), inclusive, from the patient's medical record to local
health departments operating countywide immunization information and
reminder systems and the State Department of Health Services.  Local
health departments and the State Department of Health Services may
disclose the information set forth in paragraphs (1) to (9),
inclusive, to other local health departments and health care
providers taking care of the patient, upon request for information
pertaining to a specific person.  Local health departments and the
State Department of Health Services may disclose the information in
paragraphs (1) to (6), inclusive, and paragraphs (8) and (9), to
schools, child care facilities, and family child care homes to which
the person is being admitted or in attendance, and WIC service
providers providing services to the person and health care plans
arranging for immunization services for the patient, upon request for
information pertaining to a specific person.  The following
information shall be subject to this subdivision:
   (1) The name of the patient and names of the patient's parents or
guardians.
   (2) Date of birth of the patient.
   (3) Types and dates of immunizations received by the patient.
   (4) Manufacturer and lot number for each immunization received.
   (5) Adverse reaction to immunizations received.
   (6) Other nonmedical information necessary to establish the
patient's unique identity and record.
   (7) Current address and telephone number of the patient and the
patient's parents or guardians.
   (8) Patient's gender.
   (9) Patient's place of birth.
   (d) (1) Health care providers, local health departments, and the
State Department of Health Services shall maintain the
confidentiality of information listed in subdivision (c) in the same
manner as other medical record information with patient
identification that they possess.  These providers and departments
are subject to civil action and criminal penalties for the wrongful
disclosure of the information listed in subdivision (c), in
accordance with existing law.  They shall use the information listed
in subdivision (c) only for the following purposes:
   (A) To provide immunization services to the patient, including
issuing reminder notifications to patients or their parents or
guardians when immunizations are due.
   (B) To provide or facilitate provision of third-party payer
payments for immunizations.
   (C) To compile and disseminate statistical information of
immunization status on groups of patients or populations in
California, without patient identifying information for these
patients included in these groups or populations.
   (2) Schools, child care facilities, family child care homes, WIC
service providers, and health care plans shall maintain the
confidentiality of information listed in subdivision (c) in the same
manner as other client, patient, and pupil information that they
possess.  These institutions and providers are subject to civil
action and criminal penalties for the wrongful disclosure of the
information listed in subdivision (c), in accordance with existing
law.  They shall use the information listed in subdivision (c) only
for those purposes provided in subparagraphs (A) to (C), inclusive,
of paragraph (1) and as follows:
   (A) In the case of schools, child care facilities, and family
child care homes, to carry out their responsibilities regarding
required immunization for attendance, as described in Chapter 1
(commencing with Section 120325).
   (B) In the case of WIC service providers, to perform immunization
status assessments of clients and to refer those clients found to be
due or overdue for immunizations to health care providers.
   (C) In the case of health care plans, to facilitate payments to
health care providers, to assess the immunization status of their
clients, and to tabulate statistical information on the immunization
status of groups of patients, without including patient-identifying
information in these tabulations.
   (e) A patient or a patient's parent or guardian may refuse to
permit recordsharing.  The health care provider administering
immunization shall inform the patient or the patient's parent or
guardian of the following:
   (1) The information listed in subdivision (c) may be shared with
local health departments, and the State Department of Health
Services.  The health care provider shall provide the name and
address of the department or departments with which the provider will
share the information.
   (2) Any of the information shared with local health departments
and the State Department of Health Services shall be treated as
confidential medical information and shall be used only to share with
health care providers, schools, child care facilities, family child
care homes, WIC service providers, and health care plans, upon
request.  These providers, agencies, and institutions shall, in turn,
treat the shared information as confidential, and shall use it only
as described in subdivision (d).
   (3) The patient or patient's parent or guardian has the right to
examine any immunization-related information shared in this manner
and to correct any errors in it.
   (4) The patient or the patient's parent or guardian may refuse to
allow this information to be shared in the manner described, or to
receive immunization reminder notifications at any time, or both.
   (f) If the patient or patient's parent or guardian refuses to
allow the information to be shared, pursuant to paragraph (4) of
subdivision (e), the health care provider may not share this
information in the manner described in subdivision (c).
   (g) Upon request of the patient or the patient's parent or
guardian, in writing or by other means acceptable to the recipient, a
local health department or the State Department of Health Services
that has received information about a person pursuant to subdivision
(c) shall do all of the following:
   (1) Provide the name and address of other persons or agencies with
whom the recipient has shared the information.
   (2) Stop sharing the information in its possession after the date
of the receipt of the request.
   (h) Upon notification, in writing or by other means acceptable to
the recipient, of an error in the information, a local health
department or the State Department of Health Services that has
information about a person pursuant to subdivision (c) shall correct
the error.  If the recipient is aware of a disagreement about whether
an error exists, information to that effect may be included.
   (i) Section 120330 shall not apply to this section.
  SEC. 117.  Section 124980 of the Health and Safety Code is amended
to read:
   124980.  (a) The director shall establish any regulations and
standards for hereditary disorders programs as the director deems
necessary to promote and protect the public health and safety, in
accordance with the principles established pursuant to this section.
These principles shall include, but not be limited to, the
following:
   (1) The public, especially communities and groups particularly
affected by programs on hereditary disorders, should be consulted
before any regulations and standards are adopted by the department.
   (2) The incidence, severity, and treatment costs of each
hereditary disorder and its perceived burden by the affected
community should be considered and , where appropriate, state and
national experts in the medical, psychological, ethical, social, and
economic effects or programs for the detection and management of
hereditary disorders shall be consulted by the department.
   (3) Information on the operation of all programs on hereditary
disorders within the state, except for confidential information
obtained from participants in the programs, shall be open and freely
available to the public.
   (4) Clinical testing procedures established for use in programs,
facilities, and projects shall be accurate, provide maximum
information, and the testing procedures selected shall produce
results that are subject to minimum misinterpretation.
   (5) No test or tests may be performed on any minor over the
objection of the minor's parents or guardian, nor may any tests be
performed unless the parent or guardian is fully informed of the
purposes of testing for hereditary disorders and is given reasonable
opportunity to object to the testing.
   (6) No testing, except initial screening for PKU and other
diseases that may be added to the newborn screening program, shall
require mandatory participation, and no testing programs shall
require restriction of childbearing, and participation in a testing
program shall not be a prerequisite to eligibility for, or receipt
of, any other service or assistance from, or to participate in, any
other program, except where necessary to determine eligibility for
further programs of diagnoses of or therapy for hereditary
conditions.
   (7) Counseling services for hereditary disorders shall be
available through the program or a referral source for all persons
determined to be or who believe themselves to be at risk for a
hereditary disorder as a result of screening programs; the counseling
shall be nondirective, emphasize informing the client, and shall not
require restriction of childbearing.
   (8) All participants in programs on hereditary disorders shall be
protected from undue physical and mental harm, and except for initial
screening for PKU and other diseases that may be added to newborn
screening programs, shall be informed of the nature of risks involved
in participation in the programs, and those determined to be
affected with genetic disease shall be informed of the nature, and
where possible the cost, of available therapies or maintenance
programs, and shall be informed of the possible benefits and risks
associated with these therapies and programs.
   (9) All testing results and personal information generated from
hereditary disorders programs shall be made available to an
individual over 18 years of age, or to the individual's parent or
guardian.  If the individual is a minor or incompetent, all testing
results that have positively determined the individual to either
have, or be a carrier of, a hereditary disorder shall be given
through a physician or other source of health care.
   (10) All testing results and personal information from hereditary
disorders programs obtained from any individual, or from specimens
from any individual, shall be held confidential and be considered a
confidential medical record except for information that the
individual, parent, or guardian consents to be released, provided
that the individual is first fully informed of the scope of the
information requested to be released, of all of the risks, benefits,
and purposes for the release, and of the identity of those to whom
the information will be released or made available, except for
statistical data compiled without reference to the identity of any
individual, and except for research purposes, provided that pursuant
to Subpart A (commencing with Section 46.101) of Part 46 of Title 45
of the Code of Federal Regulations entitled "Basic HHS Policy for
Protection of Human Subjects," the research has first been reviewed
and approved by an institutional review board that certifies the
approval to the custodian of the information and further certifies
that in its judgment the information is of such potentially
substantial public health value that modification of the requirement
for legally effective prior informed consent of the individual is
ethically justifiable.

(11) An individual whose confidentiality has been breached as a
result of any violation of the provisions of the Hereditary Disorders
Act , as defined in subdivision (b) of Section 27, may recover
compensatory damages and, in addition, may recover civil damages not
to exceed ten thousand dollars ($10,000), reasonable attorney's fees,
and the costs of litigation.
   (b) The department shall recommend appropriate criteria and
standards for licensing genetic counselors.  In the process of
developing the recommended criteria and standards, the department
shall consult with a group of medical experts representing medical
professional organizations including, but not limited to, the Medical
Board of California, the California Medical Association, and
organizations representing genetic counselors in California.  The
department shall report its recommendations to the Legislature by
January 1, 2000.
  SEC. 118.  Section 129820 of the Health and Safety Code is amended
to read:
   129820.  No contract for the construction or alteration of any
hospital building, made or executed on or after January 1, 1983, by
the governing board or authority of any hospital or other similar
public board, body, or officer otherwise vested with authority to
make or execute the contract, is valid, and no money shall be paid
for any work done under the contract or for any labor or materials
furnished in constructing or altering the hospital building, unless
all of the following requirements are satisfied:
   (a) The plans and specifications comply with this chapter and the
requirements contained in the California Building Standards Code.
   (b) The written approval thereof has first been obtained from the
office.
   (c) The hospital building is to be accessible to, and usable by,
persons with disabilities.
   (d) The plans and specifications comply with the fire and panic
safety requirements of the California Building Standards Code.
  SEC. 119.  Section 1063.6 of the Insurance Code is amended to read:

   1063.6.  All proceedings in which the insolvent insurer is a party
or is obligated to defend a party in any court in the state shall,
subject to waiver by the association in specific cases involving
covered claims and subject to waiver by the commissioner as to
matters that are not covered claims, be stayed for 60 days from the
date that an order of liquidation or an order of receivership with a
finding of insolvency has been entered by a superior court in this
state or by a court in the state of domicile of the insurer, and an
additional time thereafter as may be determined necessary by the
court to permit proper defense or conduct of all pending causes of
action by the association or the commissioner, as applicable.  The
stay as to matters to which the insolvent insurer is a party shall be
superseded by and when an injunction or stay order is entered by the
court in this state having jurisdiction of the liquidation or the
ancillary liquidation.
   The liquidator, receiver, or statutory successor of an insolvent
member insurer shall permit reasonable access by the association to
the insolvent insurer's records as is necessary for the association
to carry out its duties with regard to covered claims.  In addition,
the liquidator, receiver, or statutory successor shall provide the
association with copies of these records upon the reasonable request
of the association and at the expense of the association.
  SEC. 120.  Section 1765.1 of the Insurance Code is amended to read:

   1765.1.  No surplus line broker shall place any coverage with a
nonadmitted insurer unless the insurer is domiciled in the Republic
of Mexico and the placement covers only liability arising out of the
ownership, maintenance, or use of a motor vehicle, aircraft, or boat
in the Republic of Mexico, or, at the time of placement, the
nonadmitted insurer:
   (a) (1) Has established its financial stability, reputation, and
integrity, for the class of insurance the broker proposes to place,
by satisfactory evidence submitted to the commissioner through a
surplus line broker.
   (2) Has capital and surplus as follows:
   (A) Capital and surplus that together total at least fifteen
million dollars ($15,000,000).  "Capital" shall be as defined in
Section 36.  "Surplus" shall be defined as assets exceeding the sum
of liabilities for losses reported, expenses, taxes, and all other
indebtedness and reinsurance of outstanding risks as provided by law
and paid-in capital in the case of an insurer issuing or having
outstanding shares of capital stock.  The type of assets to be used
in calculating capital and surplus shall be as follows:  at least
fifteen million dollars ($15,000,000) shall be in the form of cash,
or securities of the same character and quality as specified in
Sections 1170 to 1182, inclusive, or in readily marketable securities
listed on regulated United States national or principal regional
securities exchanges.  The remaining assets shall be in the form just
described, or in the form of investments of substantially the same
character and quality as described in Sections 1190 to 1202,
inclusive.  In calculating capital and surplus under this section,
the term "same character and quality" shall permit, but not require,
the commissioner to approve assets maintained in accordance with the
laws of another state or country.  The commissioner shall be guided
by any limitations, restrictions, or other requirements of this code
or the National Association of Insurance Commissioners' Accounting
Practices and Procedures Manual in determining whether assets
substantially similar to those described in Sections 1190 to 1202,
inclusive, qualify.  The commissioner shall retain the discretion to
disapprove or disallow any asset that is not of a sound quality, or
that he or she deems to create an unacceptable risk of loss to the
insurer or to policyholders.  Securities specifically valued by the
National Association of Insurance Commissioners Securities Valuation
Office shall be presumed readily marketable absent evidence to the
contrary.  Letters of credit will not qualify as assets in the
calculation of surplus.  If less than fifteen million dollars
($15,000,000), the commissioner has affirmatively found that the
capital and surplus is adequate to protect California policyholders.
The commissioner shall consider, on determining whether to make this
finding, factors such as quality of management, the capital and
surplus of any parent company, the underwriting profit and investment
income trends, and the record of claims payment and claims handling
practices of the nonadmitted insurer.
   (B) In the case of an "Insurance Exchange" created and authorized
under the laws of individual states, maintains capital and surplus of
not less than fifty million dollars ($50,000,000) in the aggregate.
"Capital" shall be defined as in Section 36.  "Surplus" shall be
defined as assets exceeding the sum of liabilities for losses
reported, expenses, taxes, and all other indebtedness and reinsurance
of outstanding risks as provided by law and paid-in capital in the
case of an insurer issuing or having outstanding shares of capital
stock.  The type of assets to be used in calculating capital and
surplus shall be as follows:  at least fifteen million dollars
($15,000,000) shall be in the form of cash, or securities of the same
character and quality as specified in Sections 1170 to 1182,
inclusive, or in readily marketable securities listed on regulated
United States' national or principal regional securities exchanges.
The remaining assets shall be in the form just described, or in the
form of investments of substantially the same character and quality
as described in Sections 1190 to 1202, inclusive.  In calculating
capital and surplus under this section, the term "same character and
quality" shall permit, but not require, the commissioner to approve
assets maintained in accordance with the laws of another state or
country.  The commissioner shall be guided by any limitations,
restrictions, or other requirements of this code or the National
Association of Insurance Commissioners' Accounting Practices and
Procedures Manual in determining whether assets substantially similar
to those described in Sections 1190 to 1202, inclusive, qualify.
The commissioner shall retain the discretion to disapprove or
disallow any asset that is not of a sound quality, or that he or she
deems to create an unacceptable risk of loss to the insurer or to
policyholders.  Securities specifically valued by the National
Association of Insurance Commissioners Securities Valuation Office
shall be presumed readily marketable absent evidence to the contrary.
  Letters of credit will not qualify as assets in the calculation of
surplus.  In the case of an Insurance Exchange that maintains funds
for the protection of all Insurance Exchange policyholders, each
individual syndicate seeking to accept surplus line placements of
risks resident, located, or to be performed in this state shall
maintain minimum capital and surplus of not less than six million
four hundred thousand dollars ($6,400,000).  Each individual
syndicate shall increase the capital and surplus required by this
paragraph by one million dollars ($1,000,000) each year until it
attains a capital and surplus of fifteen million dollars
($15,000,000).  In the case of an Insurance Exchange that does not
maintain funds for the protection of all Insurance Exchange
policyholders, each individual syndicate seeking to accept surplus
line placement of risks resident, located, or to be performed in this
state shall meet the capital and surplus requirements of
subparagraph (A).
   (C) In the case of a syndicate that is part of a group consisting
of incorporated individual insurers, or a combination of both
incorporated and unincorporated insurers, that at all times maintains
a trust fund of not less than one hundred million dollars
($100,000,000) in a qualified United States financial institution as
security to the full amount thereof for the United States surplus
line policyholders and beneficiaries of direct policies of the group,
including all policyholders and beneficiaries of direct policies of
the syndicate, and the full balance in the trust fund is available to
satisfy the liabilities of each member of the group of those
syndicates, incorporated individual insurers or other unincorporated
insurers, without regard to their individual contributions to that
trust fund, and the trust complies with the terms of and conditions
specified in paragraph (1) of subdivision (b), the syndicate is
excepted from the capital and surplus requirements of subparagraph
(A).  The incorporated members of the group shall not be engaged in
any business other than underwriting as a member of the group and
shall be subject to the same level of solvency regulation and control
by the group's domiciliary regulator as are the unincorporated
members.
   (b) (1) In addition, to be eligible as a surplus line insurer, an
insurer not domiciled in one of the United States or its territories
shall have in force in the United States an irrevocable trust account
in a qualified United States financial institution, for the
protection of United States policyholders, of not less than five
million four hundred thousand dollars ($5,400,000) and consisting of
cash, securities acceptable to the commissioner that are authorized
pursuant to Sections 1170 to 1182, inclusive, readily marketable
securities acceptable to the commissioner that are listed on a
regulated United States national or principal regional security
exchange, or clean and irrevocable letters of credit acceptable to
the commissioner and issued by a qualified United States financial
institution.  The trust agreement shall be in a form acceptable to
the commissioner.  The funds in the trust account may be included in
any calculation of capital and surplus, except letters of credit,
which shall not be included in any calculation.
   (2) In the case of a syndicate seeking eligibility under
subparagraph (C) of paragraph (2) of subdivision (a) the syndicate
shall, in addition to the requirements of that subparagraph, at a
minimum, maintain in the United States a trust account in an amount
satisfactory to the commissioner that is not less than the amount
required by the domiciliary state of the syndicate's trust.  The
trust account shall comply with the terms and conditions specified in
paragraph (1) of subdivision (b).
   (3) In the case of a group of incorporated insurers under common
administration that maintains a trust fund of not less than one
hundred million dollars ($100,000,000) in a qualified United States
financial institution for the payment of claims of its United States
policyholders, their assigns, or successors in interest and that
complies with the terms and conditions of paragraph (1) that has
continuously transacted an insurance business outside the United
States for at least three years, that is in good standing with its
domiciliary regulator, whose individual insurer members maintain
standards and financial conditions reasonably comparable to admitted
insurers, that submits to this state's authority to examine its books
and bears the expense of examination, and that has an aggregate
policyholder surplus of ten billion dollars ($10,000,000,000), the
group is excepted from the capital and surplus requirements of
subdivision (a).
   (c) Has caused to be provided to the commissioner the following
documents:
   (1) The financial documents as specified below, each showing the
insurer's condition as of a date not more than 12 months prior to
submission:
   (A) A copy of an annual statement, prepared in the form prescribed
by the NAIC.  For an alien insurer, in lieu of an annual statement,
a licensee may submit a form as set forth by regulation and as
prepared by the insurer, and, if listed by the IID, a copy of the
complete information as required in the application for listing by
the IID.
   (B) A copy of an audited financial report on the insurer's
condition that meets the standards of subparagraph (D) for foreign
insurers or subparagraph (E) for alien insurers.
   (C) If the insurer is an alien:
   (i) A certified copy of the trust agreement referenced in
subdivision (b).
   (ii) A verified copy of the most recent quarterly statement or
list of the assets in the trust.
   (D) Financial reports filed pursuant to this section by foreign
insurers shall conform to the following standards:
   (i) Financial documents shall be certified.
   (ii) An audited financial report shall constitute a supplement to
the insurer's annual statement, as required by the annual statement
instructions issued by the NAIC.
   (iii) An audited financial report shall be prepared by an
independent certified public accountant or accounting firm in good
standing with the American Institute of Certified Public Accountants
and in all states where licensed to practice; and be prepared in
conformity with statutory accounting practices prescribed, or
otherwise permitted, by the insurance regulator of the insurer's
domiciliary jurisdiction.
   (iv) An audited financial report shall include information on the
insurer's financial position as of the end of the most recent
calendar year, and the results of its operations, cash-flows, and
changes in capital and surplus for the year then ended.
   (v) An audited financial report shall be prepared in a form and
using language and groupings substantially the same as the relevant
sections of the insurer's annual statement filed with its domiciliary
jurisdiction, and presenting comparatively the amounts as of
December 31 of the most recent calendar year and the amounts as of
December 31 of the preceding year.
   (E) Financial reports filed pursuant to this section by alien
insurers shall conform to the following standards:
   (i) Except as provided in clause (ii) of subparagraph (C),
financial documents should be certified, if certification of a
financial document is not available, the document shall be verified.

   (ii) Financial documents should be expressed in United States
dollars, but may be expressed in another currency, if the exchange
rate for the other currency as of the date of the document is also
provided.
   (iii) The responses provided pursuant to subparagraph (A) of
paragraph (1) on the form submitted in lieu of an annual statement
should follow the most recent ISI Guide to Alien Reporting Format,
"Standard Definitions of Accounting Items."  Responses that do not
agree with a standard definition shall be fully explained in the
form.
   (iv) An audited financial report shall be prepared by an
independent licensed auditor in the insurer's domiciliary
jurisdiction or in any state.
   (v) An audited financial report shall be prepared in accord with
either (I) Generally Accepted Auditing Standards that prescribe
Generally Accepted Accounting Principles, or (II) International
Accounting Standards as published and revised from time to time by
the International Auditing Guidelines published by the International
Auditing Practice Committee of the International Federation of
Accountants; and shall include financial statement notes and a
summary of significant accounting practices.
   (F) The commissioner may accept, in lieu of a document described
above, any certified or verified financial or regulatory document,
statement, or report if the commissioner finds that it possesses
reliability and financial detail substantially equal to or greater
than the document for which it is proposed to be a substitute.
   (G) If one of the financial documents required to be submitted
under subparagraphs (A) and (B) is dated within 12 months of
submission, but the other document is not so dated, the licensee may
use the outdated document if it is accompanied by a supplement.  The
supplement must meet the same requirements which apply to the
supplemented document, and must update the outdated document to a
date within the prescribed time period, preferably to the same date
as the nonsupplemented document.
   (2) A certified copy of the insurer's license issued by its
domiciliary jurisdiction, plus a certification of good standing,
certificate of compliance, or other equivalent certificate, from
either that jurisdiction or, if the jurisdiction does not issue those
certificates, from any state where it is licensed.
   (3) Information on the insurer's agent in California for service
of process, including the agent's full name and address.  The agent's
address must include a street address where the agent can be reached
during normal business hours.
   (4) The complete street address, mailing address, and telephone
number of the insurer's principal place of business.
   (5) A certified or verified explanation, report, or other
statement, from the insurance regulatory office or official of the
insurer's domiciliary jurisdiction, concerning the insurer's record
regarding market conduct and consumer complaints; or, if that
information cannot be obtained from that jurisdiction, then any other
information that the licensee can procure to demonstrate a good
reputation for payment of claims and treatment of policyholders.
   (6) A verified statement, from the insurer or licensee, on whether
the insurer or any affiliated entity is currently known to be the
subject of any order or proceeding regarding conservation,
liquidation, or other receivership; or regarding revocation or
suspension of a license to transact insurance in any jurisdiction; or
otherwise seeking to stop the insurer from transacting insurance in
any jurisdiction.  The statement shall identify the proceeding by
date, jurisdiction, and relief or sanction sought; and shall attach a
copy of the relevant order.
   (7) A certified copy of the most recent report of examination or
an explanation if the report is not available.
   (d) (1) Has provided any additional information or documentation
required by the commissioner that is relevant to the financial
stability, reputation, and integrity of the nonadmitted insurer.  In
making a determination concerning financial stability, reputation,
and integrity of the nonadmitted insurer, the commissioner shall
consider any analysis, findings, or conclusion made by the National
Association of Insurance Commissioners (NAIC) in its review of the
insurer for purposes of inclusion on or exclusion from the list of
authorized nonadmitted insurers maintained by the NAIC.  The
commissioner may, but shall not be required to, rely on, adopt, or
otherwise accept any analyses, findings, or conclusions of the NAIC,
as the commissioner deems appropriate.  In the case of a syndicate
seeking eligibility under subparagraph (C) of paragraph (2) of
subdivision (a), the commissioner may, but shall not be required to,
rely on, adopt, or otherwise accept any analyses, findings, or
conclusions of any state, as the commissioner deems appropriate, as
long as that state, in its method of regulation and review, meets the
requirements of paragraph (2).
   (2) The regulatory body of the state shall regularly receive and
review the following:  (A) an audited financial statement of the
syndicate, prepared by a certified or chartered public accountant;
(B) an opinion of a qualified actuary with regard to the syndicate's
aggregate reserves for payment of losses or claims and payment of
expenses of adjustment or settlement of losses or claims; (C) a
certification from the qualified United States financial institution
that acts as the syndicate's trustee, respecting the existence and
value of the syndicate's trust fund; and (D) information concerning
the syndicate's or its manager's operating history, business plan,
ownership and control, experience and ability, together with any
other pertinent factors, and any information indicating that the
syndicate or its manager make reasonably prompt payment of claims in
this state or elsewhere.  The regulatory body of the state shall have
the authority, either by law or through the operation of a valid and
enforceable agreement, to review the syndicate's assets and
liabilities and audit the syndicate's trust account, and shall
exercise that authority with a frequency and in a manner satisfactory
to the commissioner.
   (e) Has established that:
   (1) All documents required by subdivisions (c) and (d) have been
filed.  Each of the documents appear after review to be complete,
clear, comprehensible, unambiguous, accurate, and consistent.
   (2) The documents affirm that the insurer is not subject in any
jurisdiction to an order or proceeding that:
   (A) Seeks to stop it from transacting insurance.
   (B) Relates to conservation, liquidation, or other receivership.
   (C) Relates to revocation or suspension of its license.
   (3) The documents affirm that the insurer has actively transacted
insurance for the three years immediately preceding the filing made
under this section, unless an exemption is granted.  As used in this
paragraph, "insurer" does not include a syndicate of underwriting
entities.  The commissioner may grant an exemption if the licensee
has applied for exemption and demonstrates either of the following:
   (A) The insurer meets the condition for any exception set forth in
subdivision (a), (b), or (c) of Section 716.
   (B) If the insurer has been actively transacting insurance for at
least 12 months, and the licensee demonstrates that the exemption is
warranted because the insurer's current financial strength, operating
history, business plan, ownership and control, management
experience, and ability, together with any other pertinent factors,
make three years of active insurance transaction unnecessary to
establish sufficient reputation.
   (4) The documents confirm that the insurer holds a license to
issue insurance policies (other than reinsurance) to residents of the
jurisdiction that granted the license unless an exemption is
granted.  The commissioner may grant an exemption if the licensee has
applied for an exemption and demonstrates that the exemption is
warranted because the insurer proposes to issue in California only
commercial coverage, and is wholly owned and actually controlled by
substantial and knowledgeable business enterprises that are its
policyholders and that effectively govern the insurer's destiny in
furtherance of their own business objectives.
   (5) The information filed pursuant to paragraph (5) of subdivision
(c) or otherwise filed with or available to the commissioner,
including reports received from California policyholders, shall
indicate that the insurer makes reasonably prompt payment of claims
in this state or elsewhere.
   (6) The information available to the commissioner shall not
indicate that the insurer offers in California a licensee products or
rates that violate any provision of this code.
   (f) Has been placed on the list of eligible surplus line insurers
by the commissioner.  The commissioner shall establish a list of all
surplus line insurers that have met the requirements of subdivisions
(a) to (e), inclusive, and shall publish a master list at least
semiannually.  Any insurer receiving approval as an eligible surplus
line insurer shall be added by addendum to the list at the time of
approval, and shall be incorporated into the master list at the next
date of publication.  If an insurer appears on the most recent list,
it shall be presumed that the insurer is an eligible surplus line
insurer, unless the commissioner or his or her designee has mailed or
causes to be mailed notice to all surplus line brokers that the
commissioner has withdrawn the insurer's eligibility.  Upon receipt
of notice, the surplus line broker shall make no further placements
with the insurer.  Nothing in this subdivision shall limit the
commissioner's discretion to withdraw an insurer's eligibility.
   (g) (1) Except as provided by paragraph (2), whenever the
commissioner has reasonable cause to believe, and determines after a
public hearing, that any insurer on the list established pursuant to
subdivision (f), (A) is in an unsound financial condition, (B) does
not meet the eligibility requirements under subdivisions (a) to (e),
inclusive, (C) has violated the laws of this state, or (D) without
justification, or with a frequency so as to indicate a general
business practice, delays the payment of just claims, the
commissioner may issue an order removing the insurer from the list.
Notice of hearing shall be served upon the insurer or its agent for
service of process stating the time and place of the hearing and the
conduct, condition, or ground upon which the commissioner would make
his or her order.  The hearing shall occur not less than 20 days, nor
more than 30 days after notice is served upon the insurer or its
agent for service of process.
                                                        (2) If the
commissioner determines that an insurer's immediate removal from the
list is necessary to protect the public or an insured or prospective
insured of the insurer, or, in the case of an application by an
insurer to be placed on the list which is being denied by the
commissioner, the commissioner may issue an order pursuant to
paragraph (1) without prior notice and hearing.  At the time an order
is served pursuant to this paragraph to an insurer on the list, the
commissioner shall also issue and serve upon the insurer a statement
of the reasons that immediate removal is necessary.  Any order issued
pursuant to this paragraph shall include a notice stating the time
and place of a hearing on the order, which shall be not less than 20
days, nor more than 30 days after the notice is served.
   (3) Notwithstanding paragraphs (1) and (2), if the commissioner is
basing a decision to remove an insurer from the list, or deny an
application to be placed on the list, on the failure of the insurer
or applicant to comply with, meet or maintain any of the objective
criteria established by this section, or by regulation adopted
pursuant to this section, the commissioner may so specify this fact
in the order, and no hearing shall be required to be held on the
order.
   (4) Notwithstanding paragraphs (1) and (2), the commissioner may,
without prior notice or hearing, remove from the list established
pursuant to subdivision (f) any insurer that has failed or refused to
timely provide documents required by this section, or any
regulations adopted to implement this section.  The commissioner
shall notify all surplus line brokers of any removal made pursuant to
this paragraph.
   (h) In addition to any other statements or reports required by
this chapter, the commissioner may also address to any licensee a
written request for full and complete information respecting the
financial stability, reputation and integrity of any nonadmitted
insurer with whom the licensee has dealt or proposes to deal in the
transaction of insurance business.  The licensee so addressed shall
promptly furnish in written or printed form so much of the
information requested as he or she can produce together with a signed
statement identifying the same and giving reasons for omissions, if
any.  After due examination of the information and accompanying
statement, the commissioner may, if he or she believes it to be in
the public interest, order the licensee in writing to place no
further insurance business on property located or operations
conducted within or on the lives of persons who are residents of this
state with the nonadmitted insurer on behalf of any person.  Any
placement in the nonadmitted insurer made by a licensee after receipt
of that order is a violation of this chapter.  The commissioner may
issue an order when documents submitted pursuant to subdivisions (c)
and (d) do not meet the criteria of subdivisions (a) to (e),
inclusive, or when the commissioner obtains documents on an insurer
and the insurer does not meet the criteria of subdivisions (a) to
(e), inclusive.
   (i) The commissioner shall require, at least annually, the
submission of records and statements as are reasonably necessary to
ensure that the requirements of this section are maintained.
   (j) The commissioner shall establish by regulation a schedule of
fees to cover costs of administering and enforcing this chapter.
   (k) (1) Insurance may be placed on a limited basis with insurers
not on the list established pursuant to this section if all of the
following conditions are met:
   (A) The use of multiple insurers is necessary to obtain coverage
for 100 percent of the risk.
   (B) At least 80 percent of the risk is placed with admitted
insurers or insurers that appear on the list of eligible nonadmitted
insurers.
   (C) The placing surplus line broker submits to the commissioner,
or his or her designee, copies of all documentation relied upon by
the surplus line broker to make the broker's determination that the
financial stability, reputation, and integrity of the unlisted
insurer or insurers, are adequate to safeguard the interest of the
insured under the policy.  This documentation, and any other
documentation regarding the unlisted insurer requested by the
commissioner, shall be submitted no more than 30 days after the
insurance is placed with the unlisted insurer for the initial
placement by that broker with the particular unlisted insurer, and
annually thereafter for as long as the broker continues to make
placements with the unlisted insurer pursuant to this paragraph.
   (D) The insured has aggregate annual premiums for all risks other
than workers' compensation or health coverage totaling no less than
one hundred thousand dollars ($100,000).
   (2) Insurance may not be placed pursuant to paragraph (1) if any
of the following applies:
   (A) The unlisted insurer has for any reason been objected to by
the commissioner pursuant to this section, removed from the list, or
denied placement on the list.
   (B) The insurance includes coverage for employer-sponsored
medical, surgical, hospital, or other health or medical expense
benefits payable to the employee by the insurer.
   (C) The insurance is mandatory under the laws of the federal
government, this state, or any political subdivision thereof, and
includes any portion of limits of coverage mandated by those laws.
   (D) The insured is a multiple employer welfare arrangement, as
defined in Section 1002(40)(A) of Title 29 of the United States Code,
or any other arrangement among two or more employers that are not
under common ownership or control, which is established or maintained
for the primary purpose of providing insurance benefits to the
employees of two or more employers.
   (E) Unlisted insurers represent a disproportionate portion of the
lower layers of the coverage.
   (3) Nothing in this section is intended to alter any duties of a
surplus line broker pursuant to subdivision (b) of Section 1765 or
other laws of this state to safeguard the interests of the insured
under the policy in recommending or placing insurance with a
nonadmitted insurer.
   (4) Placements authorized by this subdivision are intended to
provide sophisticated insurance purchasers with a means to obtain
necessary commercial insurance coverage from nonadmitted insurers not
listed by the commissioner in situations where it is not
commercially possible to fully obtain that coverage from either
admitted or listed insurers.  This subdivision shall not be deemed to
permit surplus line brokers to place with nonadmitted insurers
common commercial or personal line coverages for insureds that can be
placed with insurers that are admitted or listed pursuant to this
section, whether the insured is an individual insured, or a group
created primarily for the purpose of purchasing insurance.
   (l) As used in this section:
   (1) "Certified" means an originally signed or sealed statement,
dated not more than 60 days before submission, made by a public
official or other person, attached to a copy of a document, that
attests that the copy is a true copy of the original, and that the
original is in the custody of the person making the statement.
   (2) "Domiciliary jurisdiction" means the state, nation, or
subdivision thereof under the laws of which an insurer is
incorporated or otherwise organized.
   (3) "Domiciliary state of the syndicate's trust" means the state
in which the syndicate's trust fund is principally maintained and
administered for the benefit of the syndicate's policyholders in the
United States.
   (4) "IID" means the International Insurers Department.
   (5) "Insurer" means (unless the context indicates otherwise)
"nonadmitted" insurers that are either "foreign" or "alien" insurers,
as those terms are defined in Sections 25, 27, and 1580, and
syndicates whose members consist of individual incorporated insurers
who are not engaged in any business other than underwriting as a
member of the group and individual unincorporated insurers, provided
all the members are subject to the same level of solvency regulation
and control by the group's domiciliary regulator.  The term "insurer"
includes all nonadmitted insurers selling insurance to or through
purchasing groups as defined in the Liability Risk Retention Act of
1986 (15 U.S.C. Sec. 3901 et seq.) and the California Risk Retention
Act of 1990 (Chapter 1.5 (commencing with Section 125) of Part 1 of
Division 1), except insurers that are risk retention groups as
defined by those acts.
   (6) "ISI" means Insurance Solvency International.
   (7) "Licensee" means a surplus line broker as defined in Section
47.
   (8) "NAIC" means the National Association of Insurance
Commissioners or its successor organization.
   (9) "NAIIO" means the Nonadmitted Alien Insurer Information Office
of the NAIC or its successor office.
   (10) "State" means any state of the United States, the District of
Columbia, a commonwealth, or a territory.
   (11) "Verified" means a document or copy accompanied by an
originally signed statement, dated not more than 60 days before
submission, from a responsible executive or official who has
authority to provide the statement and knowledge whereof he or she
speaks, attesting either under oath before a notary public, or under
penalty of perjury under California law, that the assertions made in
the document are true.
   (m) With respect to a nonadmitted insurer that is listed as an
authorized surplus line insurer as of December 31, 1994, pursuant to
Sections 2174.1 to 2174.14, inclusive, of Title 10 of the California
Code of Regulations, this section shall not be effective until the
subsequent expiration of the listing of that insurer.  Nothing in the
bill that amended this section during the 1994 portion of the
1993-94 Regular Session is intended to repeal or imply that there is
not authority to adopt, or to have adopted, or to continue in force,
any regulation, or part thereof, with respect to surplus line
insurance that is not clearly inconsistent with it.
  SEC. 121.  Section 10095 of the Insurance Code is amended to read:

   10095.  (a) Within 30 days following the effective date of this
chapter, the association shall submit to the commissioner, for his or
her review, a proposed plan of operation, consistent with the
provisions of this chapter, creating an association consisting of all
insurers licensed to write and engaged in writing in this state, on
a direct basis, basic property insurance or any component thereof in
homeowners or other dwelling multiperil policies.  Every insurer so
described shall be a member of the association and shall remain a
member as a condition of its authority to transact those kinds of
insurance in this state.
   (b) The proposed plan shall authorize the association to assume
and cede reinsurance on risks written by insurers in conformity with
the program.
   (c) Under the plan, each insurer shall participate in the
writings, expenses, profits and losses of the association in the
proportion that its premiums written during the second preceding
calendar year bear to the aggregate premiums written by all insurers
in the program, excluding that portion of the premiums written
attributable to the operation of the association.  Premiums written
on a policy of basic residential earthquake insurance issued by the
California Earthquake Authority pursuant to Section 10089.6 shall be
attributed to the insurer that writes the underlying policy of
residential property insurance.
   (d) The plan shall provide for administration by a governing
committee under rules to be adopted by it with the approval of the
commissioner.  Voting on administrative questions of the association
and facility shall be weighted in accordance with each insurer's
premiums written during the second preceding calendar year as
disclosed in the reports filed by the insurer with the commissioner.

   (e) The plan shall provide for a plan to encourage persons to
secure basic property insurance through normal channels from an
admitted insurer or a licensed surplus line broker by informing those
persons what steps they must take in order to secure the insurance
through normal channels.
   (f) The plan shall be subject to the approval of the commissioner
and shall go into effect upon the tentative approval of the
commissioner.  The commissioner may, at any time, withdraw his or her
tentative approval or he or she may, at any time after he or she has
given his or her final approval, revoke that approval if he or she
feels it is necessary to carry out the purposes of the chapter.  The
withdrawal or revocation of that approval shall not affect the
validity of any policies executed prior to the date of the
withdrawal.  If the commissioner disapproves or withdraws or revokes
his or her approval to all or any part of the plan of operation, the
association shall, within 30 days, submit for review an appropriately
revised plan or part thereof, and, if the association fails to do
so, or if the revised plan so filed is unacceptable, the commissioner
shall promulgate a plan of operation or part thereof as he or she
may deem necessary to carry out the purpose of this chapter.
   (g) The association may, on its own initiative or at the request
of the commissioner, amend the plan of operation, subject to approval
by the commissioner, who shall have supervision of the inspection
bureau, the facility and the association.  The commissioner or any
person designated by him or her, shall have the power of visitation
of and examination into the operation and free access to all the
books, records, files, papers, and documents that relate to operation
of the facility and association, and may summon, qualify, and
examine as witnesses all persons having knowledge of those
operations, including officers, agents, or employees thereof.
   (h) Every insurer member of the plan shall provide to applicants
who are denied coverage the statewide toll-free "800" number for the
plan established pursuant to Section 10095.5 for the purpose of
obtaining information and assistance in obtaining basic property
insurance.
  SEC. 122.  Section 10116.5 of the Insurance Code is amended to
read:
   10116.5.  (a) Every policy of disability insurance that is issued,
amended, delivered, or renewed in this state on or after January 1,
1999, that provides hospital, medical, or surgical expense coverage
under an employer-sponsored group plan for an employer subject to
COBRA, as defined in subdivision (e), or an employer group for which
the disability insurer is required to offer Cal-COBRA coverage, as
defined in subdivision (f), including a carrier providing replacement
coverage under Section 10128.3, shall further offer the former
employee the opportunity to continue benefits as required under
subdivision (b), and shall further offer the former spouse of an
employee or former employee the opportunity to continue benefits as
required under subdivision (c).
   (b) (1) If a former employee worked for the employer for at least
five years prior to the date of termination of employment and is 60
years of age or older on the date employment ends is entitled to and
so elects to continue benefits under COBRA or Cal-COBRA for himself
or herself and for any spouse, the employee or spouse may further
continue benefits beyond the date coverage under COBRA or Cal-COBRA
ends, as set forth in paragraph (2).  Except as otherwise specified
in this section, continuation coverage shall be under the same
benefit terms and conditions as if the continuation coverage under
COBRA or Cal-COBRA had remained in force.  For the employee or
spouse, continuation coverage following the end of COBRA or Cal-COBRA
is subject to payment of premiums to the insurer.  Individuals
ineligible for COBRA or Cal-COBRA or who are eligible but have not
elected or exhausted continuation coverage under federal COBRA or
Cal-COBRA are not entitled to continuation coverage under this
section.  Premiums for continuation coverage under this section shall
be billed by, and remitted to, the insurer in accordance with
subdivision (d).  Failure to pay the requisite premiums may result in
termination of the continuation coverage in accordance with the
applicable provisions in the insurer's group contract with the former
employer.
   (2) The former employer shall notify the former employee or spouse
or both, or the former spouse of the employee or former employee, of
the availability of the continuation benefits under this section in
accordance with Section 2800.2 of the Labor Code.  To continue health
care coverage pursuant to this section, the individual shall elect
to do so by notifying the insurer in writing within 30 calendar days
prior to the date continuation coverage under COBRA or Cal-COBRA is
scheduled to end.  Every disability insurer shall provide to the
employer replacing a group benefit plan policy issued by the insurer,
or to the employer's agent or broker representative, within 15 days
of any written request, information in possession of the insurer
reasonably required to administer the requirements of Section 2800.2
of the Labor Code.
   (3) The continuation coverage shall end automatically on the
earlier of (A) the date the individual reaches age 65, (B) the date
the individual is covered under any group health plan not maintained
by the employer or any other insurer or health care service plan,
regardless of whether that coverage is less valuable, (C) the date
the individual becomes entitled to Medicare under Title XVIII of the
Social Security Act, (D) for a spouse, five years from the date on
which continuation coverage under COBRA or Cal-COBRA was scheduled to
end for the spouse, or (E) the date on which the former employer
terminates its group contract with the insurer and ceases to provide
coverage for any active employees through that insurer, in which case
the insurer shall notify the former employee or spouse, or both, of
the right to a conversion policy.
   (c) (1) If a former spouse of an employee or former employee was
covered as a qualified beneficiary under COBRA or Cal-COBRA, the
former spouse may further continue benefits beyond the date coverage
under COBRA or Cal-COBRA ends, as set forth in paragraph (2) of
subdivision (b).  Except as otherwise specified in this section,
continuation coverage shall be under the same benefit terms and
conditions as if the continuation coverage under COBRA or Cal-COBRA
had remained in force.  Continuation coverage following the end of
COBRA or Cal-COBRA is subject to payment of premiums to the insurer.
Premiums for continuation coverage under this section shall be
billed by, and remitted to, the insurer in accordance with
subdivision (d).  Failure to pay the requisite premiums may result in
termination of the continuation coverage in accordance with the
applicable provisions in the insurer's group contract with the
employer or former employer.
   (2) The continuation coverage for the former spouse shall end
automatically on the earlier of (A) the date the individual reaches
65 years of age, (B) the date the individual is covered under any
group health plan not maintained by the employer or any other health
care service plan or insurer, regardless of whether that coverage is
less valuable, (C) the date the individual becomes entitled to
Medicare under Title XVIII of the Social Security Act, (D) five years
from the date on which continuation coverage under COBRA or
Cal-COBRA was scheduled to end for the former spouse, or (E) the date
on which the employer or former employer terminates its group
contract with the insurer and ceases to provide coverage for any
active employees through that insurer, in which case the insurer
shall notify the former spouse of the right to a conversion policy.
   (d) (1) If the premium charged to the employer for a specific
employee or dependent eligible under this section is adjusted for the
age of the specific employee, or eligible dependent, on other than a
composite basis, the rate for continuation coverage under this
section shall not exceed 102 percent of the premium charged by the
insurer to the employer for an employee of the same age as the former
employee electing continuation coverage in the case of an individual
who was eligible for COBRA, and 110 percent in the case of an
individual who was eligible for Cal-COBRA.  If the coverage continued
is that of a former spouse, the premium charged shall not exceed 102
percent of the premium charged by the plan to the employer for an
employee of the same age as the former spouse selecting continuation
coverage in the case of an individual who was eligible for COBRA, and
110 percent in the case of an individual who was eligible for
Cal-COBRA.
   (2) If the premium charged to the employer for a specific employee
or dependent eligible under this section is not adjusted for age of
the specific employee, or eligible dependent, then the rate for
continuation coverage under this section shall not exceed 213 percent
of the applicable current group rate.  For purposes of this section,
the "applicable current group rate" means the total premiums charged
by the insurer for coverage for the group, divided by the relevant
number of covered persons.
   (3) However, in computing the premiums charged to the specific
employer group, the insurer shall not include consideration of the
specific medical care expenditures for beneficiaries receiving
continuation coverage pursuant to this section.
   (e) For purposes of this section, "COBRA" means Section 4980B of
Title 26 , Section 1161 and following of Title 29 , and Section 300bb
of Title 42 of the United States Code, as added by the Consolidated
Omnibus Budget Reconciliation Act of 1985 (P.L. 99-272), and as
amended.
   (f) For purposes of this section, "Cal-COBRA" means the
continuation coverage that must be offered pursuant to Article 1.7
(commencing with Section 10128.50), or Article 4.5 (commencing with
Section 1366.20) of Chapter 2.2 of Division 2 of the Health and
Safety Code.
   (g) For the purposes of this section, "former spouse" means either
an individual who is divorced from an employee or former employee or
an individual who was married to an employee or former employee at
the time of the death of the employee or former employee.
   (h) Every group benefit plan evidence of coverage that is issued,
amended, or renewed after January 1, 1999, shall contain a
description of the provisions and eligibility requirements for the
continuation coverage offered pursuant to this section.
   (i) This section shall take effect on January 1, 1999.
  SEC. 123.  Section 10194.8 of the Insurance Code is amended to
read:
   10194.8.  (a) No Medicare supplement insurer shall deny or
condition the issuance or effectiveness of Medicare supplement
coverage, nor discriminate in the pricing of coverage, because of
health status, claims experience, receipt of health care or medical
condition of an applicant in the case of an application for a policy
or certificate that is submitted prior to or during the six-month
period beginning with the first day of the first month in which an
individual is both 65 years of age or older and is enrolled for
benefits under Medicare Part B.  This section shall not be construed
as preventing the exclusion of benefits for preexisting conditions as
defined in paragraph (1) of subdivision (a) of Section 10195, except
as provided for in paragraph (1) of subdivision (b).
   (b) (1) In determining whether an exclusion of benefits for a
preexisting condition may be applied to any person during the open
enrollment period provided in this section, a Medicare supplement
insurer shall credit the time the person was covered under creditable
coverage, provided that the individual becomes eligible for coverage
under the Medicare supplement policy:
   (A) Within 180 days of the termination of any creditable coverage
if the creditable coverage is offered through employment or sponsored
by an employer and if the Medicare supplement insurance is offered
through succeeding employment or sponsored by a succeeding employer,
and is not in violation of the Medicare Secondary Payer provision of
Section 1862(b) of the Social Security Act (42 U.S.C. Sec. 1395y(b)).

   (B) In cases not covered by paragraph (1), within 30 days of the
termination of any other qualifying prior coverage.
   (2) For purposes of this section, "creditable coverage" means any
of the following:
   (A) Any individual or group policy, contract, or program that is
written or administered by a disability insurer, health care service
plan, fraternal benefits society, self-insured employer plan, or any
other entity, in this state or elsewhere, and that arranges or
provides medical, hospital, and surgical coverage not designed to
supplement other private or governmental plans.  The term includes
continuation or conversion coverage but does not include accident
only, credit, coverage for onsite medical clinics, disability income,
Medicare supplement, long-term care insurance, dental coverage,
vision coverage, coverage issued as a supplement to liability
insurance, insurance arising out of a workers' compensation or
similar law, automobile medical payment insurance, or insurance under
which benefits are payable with or without regard to fault and that
is statutorily required to be contained in any liability insurance
policy or equivalent self-insurance.
   (B) The federal Medicare program pursuant to Title XVIII of the
Social Security Act.
   (C) The medicaid program pursuant to Title XIX of the Social
Security Act.
   (D) Any other publicly sponsored program, provided in this state
or elsewhere, of medical, hospital, and surgical care.
   (E) Chapter 55 (commencing with Section 1071) of Title 10 of the
United States Code (Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS)).
   (F) A medical care program of the Indian Health Service or of a
tribal organization.
   (G) A state health benefits risk pool.
   (H) A health plan offered under Chapter 89 (commencing with
Section 8901) of Title 5 of the United States Code (Federal Employees
Health Benefits Program (FEHBP)).
   (I) A public health plan as defined in federal regulations
authorized by Section 2701(c)(1)(I) of the Public Health Service Act,
as amended by Public Law 104-191, the Health Insurance Portability
and Accountability Act of 1996.
   (J) A health benefit plan under Section 5(e) of the Peace Corps
Act (22 U.S.C. Sec. 2504(e)).
   (K) Any other creditable coverage as defined by subsection (c) of
Section 2701 of Title XXVII of the federal Public Health Services Act
(42 U.S.C. Sec. 300gg(c)).

  (c) An individual enrolled in Medicare Part B by reason of
disability will be entitled to open enrollment described in this
section for six months after he or she reaches age 65.  Every insurer
shall make available to every applicant qualified for open
enrollment all policies and certificates offered by that insurer at
the time of application.  Insurers shall not discourage sales during
the open enrollment period by any means, including the altering of
the commission structure.
   (d) An individual who is 65 years of age or older and enrolled in
Medicare Part B is entitled to open enrollment described in this
section for six months following:
   (1) Receipt of a notice of termination or, if no notice is
received, the effective date of termination, from any
employer-sponsored health plan including an employer-sponsored
retiree health plan.  For purposes of this section,
"employer-sponsored retiree health plan" includes any coverage for
medical expenses that is directly or indirectly sponsored or
established by an employer for employees or retirees, their spouses,
dependents, or other included insureds.
   (2) Termination of health care services for a military retiree or
the retiree's Medicare-eligible spouse or dependent as a result of a
military base closure.
   (e) An individual who is 65 years of age or older and enrolled in
Medicare Part B is entitled to open enrollment described in this
section if the individual was covered under a policy, certificate, or
contract providing Medicare supplement coverage but that coverage
terminated because the individual established residence at a location
not served by the plan.
   (f) An individual shall be entitled to an annual open enrollment
period lasting 30 days or more, commencing with the individual's
birthday, during which time that person may purchase any Medicare
supplement coverage, with the exception of a Medicare Select policy,
that offers benefits equal to or lesser than those provided by the
previous coverage.  During this open enrollment period, no Medicare
supplement insurer that falls under this provision shall deny or
condition the issuance or effectiveness of Medicare supplement
coverage, nor discriminate in the pricing of coverage, because of
health status, claims experience, receipt of health care, or medical
condition of the individual if, at the time of the open enrollment
period, the individual is covered under another Medicare supplement
policy or contract.  A Medicare supplement insurer shall notify a
policyholder of his or her rights under this subdivision at least 30
and no more than 60 days before the beginning of the open enrollment
period.
  SEC. 124.  Section 10232.8 of the Insurance Code is amended to
read:
   10232.8.  (a) In every long-term care policy or certificate that
is not intended to be a federally qualified long-term care insurance
contract and provides home care benefits, the threshold establishing
eligibility for home care benefits shall be at least as permissive as
a provision that the insured will qualify if either one of two
criteria are met:
   (1) Impairment in two out of seven activities of daily living.
   (2) Impairment of cognitive ability.
   The policy or certificate may provide for lesser but not greater
eligibility criteria.  The commissioner, at his or her discretion,
may approve other criteria or combinations of criteria to be
substituted, if the insurer demonstrates that the interest of the
insured is better served.
   "Activities of daily living" in every policy or certificate that
is not intended to be a federally qualified long-term care insurance
contract and provides home care benefits shall include eating,
bathing, dressing, ambulating, transferring, toileting, and
continence; "impairment" means that the insured needs human
assistance, or needs continual substantial supervision; and
"impairment of cognitive ability" means deterioration or loss of
intellectual capacity due to organic mental disease, including
Alzheimer's disease or related illnesses, that requires continual
supervision to protect oneself or others.
   (b) In every long-term care policy approved or certificate issued
after the effective date of the act adding this section, that is
intended to be a federally qualified long-term care insurance
contract as described in subdivision (a) of Section 10232.1, the
threshold establishing eligibility for home care benefits shall
provide that a chronically ill insured will qualify if either one of
two criteria are met or if a third criterion, as provided by this
subdivision, is met:
   (1) Impairment in two out of six activities of daily living.
   (2) Impairment of cognitive ability.
   Other criteria shall be used in establishing eligibility for
benefits if federal law or regulations allow other types of
disability to be used applicable to eligibility for benefits under a
long-term care insurance policy.  If federal law or regulations allow
other types of disability to be used, the commissioner shall
promulgate emergency regulations to add those other criteria as a
third threshold to establish eligibility for benefits.  Insurers
shall submit policies for approval within 60 days of the effective
date of the regulations.  With respect to policies previously
approved, the department is authorized to review only the changes
made to the policy.  All new policies approved and certificates
issued after the effective date of the regulation shall include the
third criterion.  No policy shall be sold that does not include the
third criterion after one year beyond the effective date of the
regulations.  An insured meeting this third criterion shall be
eligible for benefits regardless of whether the individual meets the
impairment requirements in paragraph (1) or (2) regarding activities
of daily living and cognitive ability.
   (c) A licensed health care practitioner, independent of the
insurer, shall certify that the insured meets the definition of
"chronically ill individual" as defined under Public Law 104-191.  If
a health care practitioner makes a determination, pursuant to this
section, that an insured does not meet the definition of "chronically
ill individual," the insurer shall notify the insured that the
insured shall be entitled to a second assessment by a licensed health
care practitioner, upon request, who shall personally examine the
insured.  The requirement for a second assessment shall not apply if
the initial assessment was performed by a practitioner who otherwise
meets the requirements of this section and who personally examined
the insured.  The assessments conducted pursuant to this section
shall be performed promptly with the certification completed as
quickly as possible to ensure that an insured's benefits are not
delayed.  The written certification shall be renewed every 12 months.
  A licensed health care practitioner shall develop a written plan of
care after personally examining the insured.  The costs to have a
licensed health care practitioner certify that an insured meets, or
continues to meet, the definition of "chronically ill individual," or
to prepare written plans of care shall not count against the
lifetime maximum of the policy or certificate.  In order to be
considered "independent of the insurer," a licensed health care
practitioner shall not be an employee of the insurer and shall not be
compensated in any manner that is linked to the outcome of the
certification.  It is the intent of this subdivision that the
practitioner's assessments be unhindered by financial considerations.
  This subdivision shall apply only to a policy or certificate
intended to be a federally qualified long-term care insurance
contract.
   (d) "Activities of daily living" in every policy or certificate
intended to be a federally qualified long-term care insurance
contract as provided by Public Law 104-191 shall include eating,
bathing, dressing, transferring, toileting, and continence;
"impairment in activities of daily living" means the insured needs
"substantial assistance" either in the form of "hands-on assistance"
or "standby assistance," due to a loss of functional capacity to
perform the activity; "impairment of cognitive ability" means the
insured needs substantial supervision due to severe cognitive
impairment; "licensed health care practitioner" means a physician,
registered nurse, licensed social worker, or other individual whom
the United States Secretary of the Treasury may prescribe by
regulation; and "plan of care" means a written description of the
insured's needs and a specification of the type, frequency, and
providers of all formal and informal long-term care services required
by the insured, and the cost, if any.
   (e) Until  the time that these definitions may be superseded by
federal law or regulation, the terms "substantial assistance,"
"hands-on assistance," "standby assistance," "severe cognitive
impairment," and "substantial supervision" shall be defined according
to the safe-harbor definitions contained in Internal Revenue Service
Notice 97-31, issued May 6, 1997.
   (f) The definitions of "activities of daily living" to be used in
policies and certificates that are intended to be federally qualified
long-term care insurance shall be the following until the time that
these definitions may be superseded by federal law or regulations:
   (1) Eating, which shall mean feeding oneself by getting food in
the body from a receptacle (such as a plate, cup, or table) or by a
feeding tube or intravenously.
   (2) Bathing, which shall mean washing oneself by sponge bath or in
either a tub or shower, including the act of getting into or out of
a tub or shower.
   (3) Continence, which shall mean the ability to maintain control
of bowel and bladder function; or when unable to maintain control of
bowel or bladder function, the ability to perform associated personal
hygiene (including caring for a catheter or colostomy bag).
   (4) Dressing, which shall mean putting on and taking off all items
of clothing and any necessary braces, fasteners, or artificial
limbs.
   (5) Toileting, which shall mean getting to and from the toilet,
getting on or off the toilet, and performing associated personal
hygiene.
   (6) Transferring, which shall mean the ability to move into or out
of bed, a chair or wheelchair.
   The commissioner may approve the use of definitions of "activities
of daily living" that differ from the verbatim definitions of this
subdivision if these definitions would result in more policy or
certificate holders qualifying for long-term care benefits than would
occur by the use of the verbatim definitions of this subdivision.
In addition, the following definitions may be used without the
approval of the commissioner:  (1) the verbatim definitions of
eating, bathing, dressing, toileting, transferring, and continence in
subdivision (g); or (2) the verbatim definitions of eating, bathing,
dressing, toileting, and continence in this subdivision and a
substitute, verbatim definition of "transferring" as follows:
"transferring," which shall mean the ability to move into and out of
a bed, a chair, or wheelchair, or ability to walk or move around
inside or outside the home, regardless of the use of a cane,
crutches, or braces.
   The definitions to be used in policies and certificates for
impairment in activities of daily living, "impairment in cognitive
ability," and any third eligibility criterion adopted by regulation
pursuant to subdivision (b) shall be the verbatim definitions of
these benefit eligibility triggers allowed by federal regulations.
In addition to the verbatim definitions, the commissioner may approve
additional descriptive language to be added to the definitions, if
the additional language is (1) warranted based on federal or state
laws, federal or state regulations, or other relevant federal
decision, and (2) strictly limited to that language which is
necessary to ensure that the definitions required by this section are
not misleading to the insured.
   (g) The definitions of "activities of daily living" to be used
verbatim in policies and certificates that are not intended to
qualify for favorable tax treatment under Public Law 104-191  shall
be the following:
   (1) Eating, which shall mean reaching for, picking up, and
grasping a utensil and cup; getting food on a utensil, and bringing
food, utensil, and cup to mouth; manipulating food on plate; and
cleaning face and hands as necessary following meals.
   (2) Bathing, which shall mean cleaning the body using a tub,
shower, or sponge bath, including getting a basin of water, managing
faucets, getting in and out of tub or shower, and reaching head and
body parts for soaping, rinsing, and drying.
   (3) Dressing, which shall mean putting on, taking off, fastening,
and unfastening garments and undergarments and special devices such
as back or leg braces, corsets, elastic stockings or garments, and
artificial limbs or splints.
   (4) Toileting, which shall mean getting on and off a toilet or
commode and emptying a commode, managing clothing and wiping and
cleaning the body after toileting, and using and emptying a bedpan
and urinal.
   (5) Transferring, which shall mean moving from one sitting or
lying position to another sitting or lying position; for example,
from bed to or from a wheelchair or sofa, coming to a standing
position, or repositioning to promote circulation and prevent skin
breakdown.
   (6) Continence, which shall mean the ability to control bowel and
bladder as well as use ostomy or catheter receptacles, and apply
diapers and disposable barrier pads.
   (7) Ambulating, which shall mean walking or moving around inside
or outside the home regardless of the use of a cane, crutches, or
braces.
  SEC. 125.  Section 10273.4 of the Insurance Code is amended to
read:
   10273.4.  All disability insurers writing, issuing, or
administering group health benefit plans shall make all of these
health benefit plans renewable with respect to the policyholder,
contractholder, or employer except in case of the following:
   (a) Nonpayment of the required premiums by the policyholder,
contractholder, or employer.
   (b) Fraud or other intentional misrepresentation by the
policyholder, contractholder, or employer.
   (c) Noncompliance with a material health benefit plan contract
provision.
   (d) The insurer ceases to provide or arrange for the provision of
health care services for new group health benefit plans in this
state, provided that the following conditions are satisfied:
   (1) Notice of the decision to cease writing, issuing, or
administering new or existing group health benefit plans in this
state is provided to the commissioner and to either the policyholder,
contractholder, or employer at least 180 days prior to
discontinuation of that coverage.
   (2) Group health benefit plans shall not be canceled for 180 days
after the date of the notice required under paragraph (1) and for
that business of a plan that remains in force, any disability insurer
that ceases to write, issue, or administer new group health benefit
plans shall continue to be governed by this section with respect to
business conducted under this section.
   (3) Except as provided under subdivision (h) of Section 10705, or
unless the commissioner had made a determination pursuant to Section
10712, a disability insurer that ceases to write, issue, or
administer new group health benefit plans in this state after the
effective date of this section shall be prohibited from writing,
issuing, or administering new group health benefit plans to employers
in this state for a period of five years from the date of notice to
the commissioner.
   (e) The disability insurer withdraws a group health benefit plan
from the market; provided, that the plan notifies all affected
contractholders, policyholders, or employers and the commissioner at
least 90 days prior to the discontinuation of the health benefit
plans, and that the insurer makes available to the contractholder,
policyholder, or employer all health benefit plans that it makes
available to new employer business without regard to the claims
experience of health-related factors of insureds or individuals who
may become eligible for the coverage.
   (f) For the purposes of this section, "health benefit plan" shall
have the same meaning as in subdivision (a) of Section 10198.6 and
Section 10198.61.
   (g) For the purposes of this section, "eligible employee" shall
have the same meaning as in Section 10700, except that it applies to
all health benefit plans issued to employer groups of two or more
employees.
  SEC. 126.  Section 10700 of the Insurance Code is amended to read:

   10700.  As used in this chapter:
   (a) "Agent or broker" means a person or entity licensed under
Chapter 5 (commencing with Section 1621) of Part 2 of Division 1.
   (b) "Benefit plan design" means a specific health coverage product
issued by a carrier to small employers, to trustees of associations
that include small employers, or to individuals if the coverage is
offered through employment or sponsored by an employer.  It includes
services covered and the levels of copayment and deductibles, and it
may include the professional providers who are to provide those
services and the sites where those services are to be provided.  A
benefit plan design may also be an integrated system for the
financing and delivery of quality health care services which has
significant incentives for the covered individuals to use the system.

   (c) "Board" means the Major Risk Medical Insurance Board.
   (d) "Carrier" means any disability insurance company or any other
entity that writes, issues, or administers health benefit plans that
cover the employees of small employers, regardless of the situs of
the contract or master policyholder.  For the purposes of Article 3
(commencing with Section 10719) and Article 4 (commencing with
Section 10730), "carrier" also includes health care service plans.
   (e) "Dependent" means the spouse or child of an eligible employee,
subject to applicable terms of the health benefit plan covering the
employee, and includes dependents of guaranteed association members
if the association elects to include dependents under its health
coverage at the same time it determines its membership composition
pursuant to subdivision (z).
   (f) "Eligible employee" means either of the following:
   (1) Any permanent employee who is actively engaged on a full-time
basis in the conduct of the business of the small employer with a
normal workweek of at least 30 hours, in the small employer's regular
place of business, who has met any statutorily authorized applicable
waiting period requirements.  The term includes sole proprietors or
partners of a partnership, if they are actively engaged on a
full-time basis in the small employer's business, and they are
included as employees under a health benefit plan of a small
employer, but does not include employees who work on a part-time,
temporary, or substitute basis.  It includes any eligible employee as
defined in this paragraph who obtains coverage through a guaranteed
association.  Employees of employers purchasing through a guaranteed
association shall be deemed to be eligible employees if they would
otherwise meet the definition except for the number of persons
employed by the employer.  A permanent employee who works at least 20
hours but not more than 29 hours is deemed to be an eligible
employee if all four of the following apply:
   (A) The employee otherwise meets the definition of an eligible
employee except for the number of hours worked.
   (B) The employer offers the employee health coverage under a
health benefit plan.
   (C) All similarly situated individuals are offered coverage under
the health benefit plan.
   (D) The employee must have worked at least 20 hours per normal
workweek for at least 50 percent of the weeks in the previous
calendar quarter.  The insurer may request any necessary information
to document the hours and time period in question, including, but not
limited to, payroll records and employee wage and tax filings.
   (2) Any member of a guaranteed association as defined in
subdivision (z).
   (g) "Enrollee" means an eligible employee or dependent who
receives health coverage through the program from a participating
carrier.
   (h) "Financially impaired" means a carrier that, on or after the
effective date of this chapter, is not insolvent and is either:
   (1) Deemed by the commissioner to be potentially unable to fulfill
its contractual obligations.
   (2) Placed under an order of rehabilitation or conservation by a
court of competent jurisdiction.
   (i) "Fund" means the California Small Group Reinsurance Fund.
   (j) "Health benefit plan" means a policy or contract written or
administered by a carrier that arranges or provides health care
benefits for the covered eligible employees of a small employer and
their dependents.  The term does not include accident only, credit,
disability income, coverage of Medicare services pursuant to
contracts with the United States government, Medicare supplement,
long-term care insurance, dental, vision, coverage issued as a
supplement to liability insurance, automobile medical payment
insurance, or insurance under which benefits are payable with or
without regard to fault and that is statutorily required to be
contained in any liability insurance policy or equivalent
self-insurance.
   (k) "In force business" means an existing health benefit plan
issued by the carrier to a small employer.
   (l) "Late enrollee" means the following:
   (1) An eligible employee or dependent who has declined health
coverage under a health benefit plan offered by a small employer at
the time of the initial enrollment period provided under the terms of
the health benefit plan, and who subsequently requests enrollment in
a health benefit plan of that small employer, provided that the
initial enrollment period shall be a period of at least 30 days.
   (2) Any member of an association that is a guaranteed association
as well as any other person eligible to purchase through the
guaranteed association when that person has failed to purchase
coverage during the initial enrollment period provided under the
terms of the guaranteed association's health benefit plan and who
subsequently requests enrollment in the plan, provided that the
initial enrollment period shall be a period of at least 30 days.
However, an eligible employee, another person eligible for coverage
through a guaranteed association pursuant to subdivision (z), or
dependent shall not be considered a late enrollee if the following
conditions are met:
   (A) The individual meets all of the following criteria:
   (i) The individual was covered under another employer health
benefit plan or no share-of-cost Medi-Cal coverage at the time the
individual was eligible to enroll
   (ii) The individual was certified at the time of the initial
enrollment that coverage under another employer health benefit plan
or no share-of-cost Medi-Cal coverage was the reason for declining
enrollment, provided that, if the individual was covered under
another employer health plan, the individual was given the
opportunity to make the certification required by this subdivision
and was notified that failure to do so could result in later
treatment as a late enrollee
   (iii) The individual has lost or will lose coverage under another
employer health benefit plan as a result of termination of employment
of the individual or of a person through whom the individual was
covered as a dependent, change in employment status of the
individual, or of a person through whom the individual was covered as
a dependent, the termination of the other plan's coverage, cessation
of an employer's contribution toward an employee or dependent's
coverage, death of the person through whom the individual was covered
as a dependent, legal separation, divorce, or loss of no
share-of-cost Medi-Cal coverage
   (iv) The individual requests enrollment within 30 days after
termination of coverage or employer contribution toward coverage
provided under another employer health benefit plan
   (B) The individual is employed by an employer who offers multiple
health benefit plans and the individual elects a different plan
during an open enrollment period
   (C) A court has ordered that coverage be provided for a spouse or
minor child under a covered employee's health benefit plan
   (D) In the case of an eligible employee as defined in paragraph
(1) of subdivision (f):
   (i) The carrier cannot produce a written statement from the
employer stating that the individual or the person through whom an
individual was eligible to be covered as a dependent, prior to
declining coverage, was provided with, and signed acknowledgment of,
an explicit written notice in boldface type specifying that failure
to elect coverage during the initial enrollment period permits the
carrier to impose, at the time of the individual's later decision to
elect coverage, an exclusion from coverage for a period of 12 months
as well as a six-month preexisting condition exclusion unless the
individual meets the criteria specified in subparagraph (A), (B), or
(C).
   (ii) The employee is a guaranteed association member and the plan
cannot produce a written statement from the guaranteed association
stating that the association sent a written notice in boldface type
to all potentially eligible association members at their last known
address prior to the initial enrollment period informing members that
failure to elect coverage during the initial enrollment period
permits the plan to impose, at the time of the member's later
decision to elect coverage, an exclusion from coverage for a period
of 12 months as well as a six-month preexisting condition exclusion
unless the member can demonstrate that he or she meets the
requirements of clauses (i), (ii), or (iii) of subparagraph (A) or
subparagraph (B) or (C).
   (E) In the case of an employer or person who is not a member of an
association, was eligible to purchase coverage through a guaranteed
association, and did not do so, and would not be eligible to purchase
guaranteed coverage unless purchased through a guaranteed
association, the employer or person can demonstrate that he or she
meets the requirements of clauses (i), (ii), or (iii) of subparagraph
(A) or subparagraph (B) or (C), or that he or she recently had a
change in status that would make him or her eligible and that
application for coverage was made within 30 days of the change
   (F) The individual is an employee or dependent who meets the
criteria described in subparagraph (A) and was under a COBRA
continuation provision and the coverage under that provision has been
                                                 exhausted.  For
purposes of this section, the definition of "COBRA" set forth in
subdivision (e) of Section 1373.621 of the Health and Safety Code
shall apply
   (G) The individual is a dependent of an enrolled eligible employee
who has lost or will lose his or her no-share-of-cost Medi-Cal
coverage and requests enrollment within 30 days after notification of
this loss of coverage.
   (m) "New business" means a health benefit plan issued to a small
employer that is not the carrier's in force business.
   (n) "Participating carrier" means a carrier that has entered into
a contract with the program to provide health benefits coverage under
this part.
   (o) "Plan of operation" means the plan of operation of the fund,
including articles, bylaws, and operating rules adopted by the fund
pursuant to Article 3 (commencing with Section 10719).
   (p) "Program" means the Health Insurance Plan of California.
   (q) "Preexisting condition provision" means a policy provision
that excludes coverage for charges or expenses incurred during a
specified period following the insured's effective date of coverage,
as to a condition for which medical advice, diagnosis, care, or
treatment was recommended or received during a specified period
immediately preceding the effective date of coverage.
   (r) "Creditable coverage" means:
   (1) Any individual or group policy, contract, or program that is
written or administered by a disability insurer, health care service
plan, fraternal benefits society, self-insured employer plan, or any
other entity, in this state or elsewhere, and that arranges or
provides medical, hospital, and surgical coverage not designed to
supplement other private or governmental plans.  The term includes
continuation or conversion coverage but does not include accident
only, credit, coverage for onsite medical clinics, disability income,
Medicare supplement, long-term care, dental, vision, coverage issued
as a supplement to liability insurance, insurance arising out of a
workers' compensation or similar law, automobile medical payment
insurance, or insurance under which benefits are payable with or
without regard to fault and that is statutorily required to be
contained in any liability insurance policy or equivalent
self-insurance.
   (2) The federal Medicare program pursuant to Title XVIII of the
Social Security Act.
   (3) The medicaid program pursuant to Title XIX of the Social
Security Act.
   (4) Any other publicly sponsored program, provided in this state
or elsewhere, of medical, hospital, and surgical care.
   (5) Chapter 55 (commencing with Section 1071) of Title 10 of the
United States Code (Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS)).
   (6) A medical care program of the Indian Health Service or of a
tribal organization.
   (7) A state health benefits risk pool.
   (8) A health plan offered under Chapter 89 (commencing with
Section 8901) of Title 5 of the United States Code (Federal Employees
Health Benefits Program (FEHBP)).
   (9) A public health plan as defined in federal regulations
authorized by Section 2701(c)(1)(I) of the Public Health Service Act,
as amended by Public Law 104-191, the Health Insurance Portability
and Accountability Act of 1996.
   (10) A health benefit plan under Section 5(e) of the Peace Corps
Act (22 U.S.C. Sec. 2504(e)).
   (11) Any other creditable coverage as defined by subsection (c) of
Section 2701 of Title XXVII of the federal Public Health Services
Act (42 U.S.C. Sec. 300gg(c)).
   (s) "Rating period" means the period for which premium rates
established by a carrier are in effect and shall be no less than six
months.
   (t) "Risk adjusted employee risk rate" means the rate determined
for an eligible employee of a small employer in a particular risk
category after applying the risk adjustment factor.
   (u) "Risk adjustment factor" means the percent adjustment to be
applied equally to each standard employee risk rate for a particular
small employer, based upon any expected deviations from standard
claims.  This factor may not be more than 120 percent or less than 80
percent until July 1, 1996.  Effective July 1, 1996, this factor may
not be more than 110 percent or less than 90 percent.
   (v) "Risk category" means the following characteristics of an
eligible employee:  age, geographic region, and family size of the
employee, plus the benefit plan design selected by the small
employer.
   (1) No more than the following age categories may be used in
determining premium rates:
   Under 30
   30-39
   40-49
   50-54
   55-59
   60-64
   65 and over
   However, for the 65-and-over age category, separate premium rates
may be specified depending upon whether coverage under the health
benefit plan will be primary or secondary to benefits provided by the
federal Medicare program pursuant to Title XVIII of the federal
Social Security Act.
   (2) Small employer carriers shall base rates to small employers
using no more than the following family size categories:
   (A) Single.
   (B) Married couple.
   (C) One adult and child or children.
   (D) Married couple and child or children.
   (3) (A) In determining rates for small employers, a carrier that
operates statewide shall use no more than nine geographic regions in
the state, shall have no region smaller than an area in which the
first three digits of all its ZIP Codes are in common within a
county, and shall divide no county into more than two regions.
Carriers shall be deemed to be operating statewide if their coverage
area includes 90 percent or more of the state's population.
Geographic regions established pursuant to this section shall, as a
group, cover the entire state, and the area encompassed in a
geographic region shall be separate and distinct from areas
encompassed in other geographic regions.  Geographic regions may be
noncontiguous.
   (B) In determining rates for small employers, a carrier that does
not operate statewide shall use no more than the number of geographic
regions in the state than is determined by the following formula:
the population, as determined in the last federal census, of all
counties that are included in their entirety in a carrier's service
area divided by the total population of the state, as determined in
the last federal census, multiplied by 9.  The resulting number shall
be rounded to the nearest whole integer.  No region may be smaller
than an area in which the first three digits of all its ZIP Codes are
in common within a county and no county may be divided into more
than two regions.  The area encompassed in a geographic region shall
be separate and distinct from areas encompassed in other geographic
regions.  Geographic regions may be noncontiguous.  No carrier shall
have less than one geographic area.
   (w) "Small employer" means either of the following:
   (1) Any person, proprietary or nonprofit firm, corporation,
partnership, public agency, or association that is actively engaged
in business or service that, on at least 50 percent of its working
days during the preceding calendar quarter, or preceding calendar
year, employed at least 2, but not more than 50, eligible employees,
the majority of whom were employed within this state, that was not
formed primarily for purposes of buying health insurance and in which
a bona fide employer-employee relationship exists.  In determining
whether to apply the calendar quarter or calendar year test, the
insurer shall use the test that ensures eligibility if only one test
would establish eligibility.  However, for purposes of subdivisions
(b) and (h) of Section 10705, the definition shall include employers
with at least three eligible employees until July 1, 1997, and two
eligible employees thereafter.  In determining the number of eligible
employees, companies that are affiliated companies and that are
eligible to file a combined income tax return for purposes of state
taxation shall be considered one employer.  Subsequent to the
issuance of a health benefit plan to a small employer pursuant to
this chapter, and for the purpose of determining eligibility, the
size of a small employer shall be determined annually.  Except as
otherwise specifically provided, provisions of this chapter that
apply to a small employer shall continue to apply until the health
benefit plan anniversary following the date the employer no longer
meets the requirements of this definition.  It includes any small
employer as defined in this paragraph who purchases coverage through
a guaranteed association, and any employer purchasing coverage for
employees through a guaranteed association.
   (2) Any guaranteed association, as defined in subdivision (y),
that purchases health coverage for members of the association.
   (x) "Standard employee risk rate" means the rate applicable to an
eligible employee in a particular risk category in a small employer
group.
   (y) "Guaranteed association" means a nonprofit organization
consisting of a group of individuals or employers who associate based
solely on participation in a specified profession or industry,
accepting for membership any individual or employer meeting its
membership criteria that (1) includes one or more small employers as
defined in paragraph (1) of subdivision (w), (2) does not condition
membership directly or indirectly on the health or claims history of
any person, (3) uses membership dues solely for and in consideration
of the membership and membership benefits, except that the amount of
the dues shall not depend on whether the member applies for or
purchases insurance offered by the association, (4) is organized and
maintained in good faith for purposes unrelated to insurance, (5) has
been in active existence on January 1, 1992, and for at least five
years prior to that date, (6) has been offering health insurance to
its members for at least five years prior to January 1, 1992, (7) has
a constitution and bylaws, or other analogous governing documents
that provide for election of the governing board of the association
by its members, (8) offers any benefit plan design that is purchased
to all individual members and employer members in this state, (9)
includes any member choosing to enroll in the benefit plan design
offered to the association, provided that the member has agreed to
make the required premium payments, and (10) covers at least 1,000
persons with the carrier with which it contracts.  The requirement of
1,000 persons may be met if component chapters of a statewide
association contracting separately with the same carrier cover at
least 1,000 persons in the aggregate.
   This subdivision applies regardless of whether a master policy by
an admitted insurer is delivered directly to the association or a
trust formed for or sponsored by an association to administer
benefits for association members.
   For purposes of this subdivision, an association formed by a
merger of two or more associations after January 1, 1992, and
otherwise meeting the criteria of this subdivision shall be deemed to
have been in active existence on January 1, 1992, if its predecessor
organizations had been in active existence on January 1, 1992, and
for at least five years prior to that date and otherwise met the
criteria of this subdivision.
   (z) "Members of a guaranteed association" means any individual or
employer meeting the association's membership criteria if that person
is a member of the association and chooses to purchase health
coverage through the association.  At the association's discretion,
it may also include employees of association members, association
staff, retired members, retired employees of members, and surviving
spouses and dependents of deceased members.  However, if an
association chooses to include those persons as members of the
guaranteed association, the association must so elect in advance of
purchasing coverage from a plan.  Health plans may require an
association to adhere to the membership composition it selects for up
to 12 months.
   (aa) "Affiliation period" means a period that, under the terms of
the health benefit plan, must expire before health care services
under the plan become effective.
  SEC. 127.  Section 10841 of the Insurance Code is amended to read:

   10841.  (a) A purchasing alliance shall comply with all
requirements pertaining to the underwriting, rating and renewal
practices for small employers, pursuant to subdivisions (a) and (b)
of Section 1357.12 of , and subdivision (f) of Section 1357.03 of,
the Health and Safety Code, and subdivisions (a) and (b) of Section
10714.
   (b) A purchasing alliance shall comply with all requirements
pertaining to the marketing practices for small employers who
participate in the purchasing alliance, pursuant to subdivision (d)
of Section 1357.03 of the Health and Safety Code and subdivisions (f)
and (j) of Section 10705.
   (c) A purchasing alliance shall comply with all requirements
pertaining to the participation requirements for small employers who
participate in the purchasing alliance, pursuant to subdivision (b)
of Section 1357.03 of the Health and Safety Code and Section 10706.
A carrier participating in a purchasing alliance shall be deemed to
be in compliance with this requirement.
  SEC. 128.  Section 12963.96 of the Insurance Code is amended and
renumbered to read:
   12693.96.  (a) There is hereby created in the State Treasury the
Healthy Families Fund, which is, notwithstanding Section 13340 of the
Government Code, continuously appropriated to the board for the
purposes specified in this part.
   (b) The board shall authorize the expenditure, from the fund, of
any state funds, federal funds, or family contributions deposited
into the fund.  The board may authorize the State Department of
Health Services to transfer funds appropriated to the department for
the program to the Healthy Families Fund, and to also deposit those
funds in, and to disburse those funds from, the Healthy Families
Fund.
   (c) Notwithstanding any other provision of law, this part shall be
implemented only if, and to the extent that, as provided under Title
XXI of the Social Security Act, federal financial participation is
available and state plan approval is obtained.
   (d) Nothing in this part is intended to establish an entitlement
for individual coverage.
  SEC. 129.  Section 12963.97 of the Insurance Code is amended and
renumbered to read:
   12693.97.  The State Department of Health Services and the board
may explore and utilize any options available under federal law to
allow the use of charitable funding as a match for federal funds for
use in the provision of coverage by private and public not-for-profit
organizations consistent with the provisions of this part.
  SEC. 130.  Section 138.4 of the Labor Code is amended to read:
   138.4.  The administrative director shall, with respect to
injuries involving loss of time:
   (a) Prescribe reasonable rules and regulations for the serving on
the employee of notices dealing with the payment, nonpayment or delay
in payment of temporary disability, permanent disability, and death
benefits and the provision of vocational rehabilitation services,
with copies to the administrative director.  A pamphlet published or
approved by the administrative director, meeting the criteria
specified in subdivision (a) of Section 139.6, shall be included with
the first notice of payment or notice of delay in payment served on
each injured employee.
   (b) Prescribe reasonable rules and regulations for providing the
employee notice of any change in the amount or type of benefits being
provided, the termination of benefits, and an accounting of the
benefits paid, with copies to the administrative director.
   (c) Prescribe reasonable rules and regulations for serving on the
employee notice of rejection of any liability for compensation and
the remedies available to the employee, and the employee's right to
seek information and advice from an information and assistance
officer or an attorney.
  SEC. 131.  Section 201.5 of the Labor Code is amended to read:
   201.5.  An employer who lays off an employee engaged in the
production of motion pictures, whose unusual or uncertain terms of
employment require special computation in order to ascertain the
amount due, shall be deemed to have made immediate payment of wages
within the meaning of Section 201 if the wages of the employee are
paid  by the next regular payday, as prescribed by Section 204,
following the layoff.  For purposes of this section, "layoff" means
the termination of employment of an employee where the employee
retains eligibility for reemployment with the employer.  For purposes
of this section, "discharge" means the unconditional termination of
employment of an employee.  However, if an employee is discharged,
payment of wages shall be made within 24 hours after discharge,
excluding Saturdays, Sundays, and holidays.  For purposes of this
section, a payment required by this section may be mailed and the
date of mailing is the date of payment.
   The Legislature finds and determines that special provision must
be made for the payment of wages on layoff and discharge of persons
engaged in the production of motion pictures because their employment
at various locations is often far removed from the employer's
principal administrative offices and the unusual hours of their
employment in this industry is often geared to the completion of a
portion of a picture, which time of completion may have no relation
to normal working hours.
  SEC. 132.  Section 1771.5 of the Labor Code is amended to read:
   1771.5.  (a) Notwithstanding Section 1771, an awarding body shall
not require the payment of the general prevailing rate of per diem
wages or the general prevailing rate of per diem wages for holiday
and overtime work for any public works project of twenty-five
thousand dollars ($25,000) or less when the project is for
construction work, or for any public works project of fifteen
thousand dollars ($15,000) or less when the project is for
alteration, demolition, repair, or maintenance work, if the awarding
body elects to initiate and enforce a labor compliance program
pursuant to subdivision (b) for every public works project under the
authority of the awarding body.
   (b) For the purposes of this section, a labor compliance program
shall include, but not be limited to, the following requirements:
   (1) All bid invitations and public works contracts shall contain
appropriate language concerning the requirements of this chapter.
   (2) A prejob conference shall be conducted with the contractor and
subcontractors to discuss federal and state labor law requirements
applicable to the contract.
   (3) Project contractors and subcontractors shall maintain and
furnish, at a designated time, a certified copy of each weekly
payroll containing a statement of compliance signed under penalty of
perjury.
   (4) The awarding body shall review, and, if appropriate, audit
payroll records to verify compliance with this chapter.
   (5) The awarding body shall withhold contract payments when
payroll records are delinquent or inadequate.
   (6) The awarding body shall withhold contract payments equal to
the amount of underpayment and applicable penalties when, after
investigation, it is established that underpayment has occurred.
  SEC. 133.  Section 3716.2 of the Labor Code is amended to read:
   3716.2.  Notwithstanding the precise elements of an award of
compensation benefits, and notwithstanding the claim and demand for
payment being made therefor to the director, the director, as
administrator of the Uninsured Employers Fund, shall pay the claimant
only such benefits allowed, recognizing proper liens thereon, that
would have accrued against an employer properly insured for workers'
compensation liability.  The Uninsured Employers Fund shall not be
liable for any penalties or for the payment of interest on any
awards.  However, in civil suits by the director to enforce payment
of an award, including procedures pursuant to Section 3717, the total
amount of the award, including interest, other penalties, and
attorney's fees granted by the award, shall be sought.  Recovery by
the director, in a civil suit or by other means, of awarded benefits
in excess of amounts paid to the claimant by the Uninsured Employers
Fund shall be paid over to the injured employee or his
representative, as the case may be.
  SEC. 134.  Section 4707 of the Labor Code is amended to read:
   4707.  (a) Except as provided in subdivision (b), no benefits,
except reasonable expenses of burial not exceeding one thousand
dollars ($1,000), shall be awarded under this division on account of
the death of an employee who is an active member of the Public
Employees' Retirement System unless it is determined that a special
death benefit, as defined in the Public Employees' Retirement Law, or
the benefit provided in lieu of the special death benefit in
Sections 21547 and 21548 of the Government Code, will not be paid by
the Public Employees' Retirement System to the surviving spouse or
children under 18 years of age, of the deceased, on account of the
death, but if the total death allowance paid to the surviving spouse
and children is less than the benefit otherwise payable under this
division the surviving spouse and children are entitled, under this
division, to the difference.
   The amendments to this section during the 1977-78 Regular Session
shall be applied retroactively to July 1, 1976.
   (b) The limitation prescribed by subdivision (a) shall not apply
to local safety members, or patrol members, as defined in Section
20390 of the Government Code, of the Public Employees' Retirement
System.
  SEC. 135.  Section 5433 of the Labor Code is amended to read:
   5433.  (a) Any advertisement or other device designed to produce
leads based on a response from a person to file a workers'
compensation claim or to engage or consult counsel or a medical care
provider or clinic shall disclose that an agent may contact the
individual if that is the fact.  In addition, an individual who makes
contact with a person as a result of acquiring that individual's
name from a lead generating device shall disclose that fact in the
initial contact with that person.
   (b) No person shall solicit persons to file a workers'
compensation claim or to engage or consult counsel or a medical care
provider or clinic to consider a workers' compensation claim through
the use of a true or fictitious name which is deceptive or misleading
with regard to the status, character, or proprietary or
representative capacity of the entity or person, or to the true
purpose of the advertisement.
   (c) For purposes of this section, an advertisement includes a
solicitation in any newspaper, magazine, circular, form letter, or
open publication, published, distributed, or circulated in this
state, or on any billboard, card, label, transit advertisement, or
other written advertising medium, and includes envelopes, stationery,
business cards, or other material designed to encourage the filing
of a workers' compensation claim.
   (d) Advertisements shall not employ words, initials, letters,
symbols, or other devices which are so similar to those used by
governmental agencies, a nonprofit or charitable institution, or
other entity that they could have the capacity or tendency to mislead
the public.  Examples of misleading materials include, but are not
limited to, those that imply any of the following:
   (1) The advertisement is in some way provided by or is endorsed by
a governmental agency or charitable institution.
   (2) The advertiser is the same as, is connected with, or is
endorsed by a governmental agency or charitable institution.
   (e) Advertisements may not use the name of a state or political
subdivision thereof in an advertising solicitation.
   (f) Advertisements may not use any name, service mark, slogan,
symbol, or any device in any manner which implies that the
advertiser, or any person or entity associated with the advertiser,
or that any agency who may call upon the person in response to the
advertisement, is connected with a governmental agency.
   (g) Advertisements may not imply that the reader, listener, or
viewer may lose a right or privilege or benefits under federal,
state, or local law if he or she fails to respond to the
advertisement.
  SEC. 136.  Section 136.2 of the Penal Code is amended to read:
   136.2.  Upon a good cause belief that harm to, or intimidation or
dissuasion of, a victim or witness has occurred or is reasonably
likely to occur, any court with jurisdiction over a criminal matter
may issue orders including, but not limited to, the following:
   (a) Any order issued pursuant to Section 6320 of the Family Code.

   (b) An order that a defendant shall not violate any provision of
Section 136.1.
   (c) An order that a person before the court other than a
defendant, including, but not limited to, a subpoenaed witness or
other person entering the courtroom of the court, shall not violate
any provisions of Section 136.1.
   (d) An order that any person described in this section shall have
no communication whatsoever with any specified witness or any victim,
except through an attorney under any reasonable restrictions that
the court may impose.
   (e) An order calling for a hearing to determine if an order as
described in subdivisions (a) to (d), inclusive, should be issued.
   (f) An order that a particular law enforcement agency within the
jurisdiction of the court provide protection for a victim or a
witness, or both, or for immediate family members of a victim or a
witness who reside in the same household as the victim or witness or
within reasonable proximity of the victim's or  witness' household,
as determined by the court.  The order shall not be made without the
consent of the law enforcement agency except for limited and
specified periods of time and upon an express finding by the court of
a clear and present danger of harm to the victim or witness or
immediate family members of the victim or witness.
   For purposes of this subdivision, "immediate family members"
include the spouse, children, or parents of the victim or witness.
   (g) Any order protecting victims of violent crime from contact,
with the intent to annoy, harass, threaten, or commit acts of
violence, by the defendant.  The court or its designee shall transmit
orders made under this subdivision to law enforcement personnel
within one business day of the issuance of the order, pursuant to
subdivision (a) of Section 6380 of the Family Code.
   Any person violating any order made pursuant to subdivisions (a)
to (g), inclusive, may be punished for any substantive offense
described                                             in Section
136.1, or for a contempt of the court making the order.  A finding of
contempt shall not be a bar to prosecution for a violation of
Section 136.1.  However, any person so held in contempt shall be
entitled to credit for any punishment imposed therein against any
sentence imposed upon conviction of an offense described in Section
136.1.  Any conviction or acquittal for any substantive offense under
Section 136.1 shall be a bar to a subsequent punishment for contempt
arising out of the same act.
   (h) (1) In all cases where the defendant is charged with a crime
of domestic violence, as defined in Section 13700, the court shall
consider issuing the above-described orders on its own motion.  All
interested parties shall receive a copy of those orders.  In order to
facilitate this, the court's records of all criminal cases involving
domestic violence shall be marked to clearly alert the court to this
issue.
   (2) In those cases in which a complaint, information, or
indictment charging a crime of domestic violence, as defined in
Section 13700, has been issued, a restraining order or protective
order against the defendant issued by the criminal court in that case
has precedence over any other outstanding court order against the
defendant.
   (i) The Judicial Council shall adopt forms for orders under this
section.
  SEC. 137.  Section 148.10 of the Penal Code is amended to read:
   148.10.  (a) Every person who willfully resists a peace officer in
the discharge or attempt to discharge any duty of his or her office
or employment and whose willful resistance proximately causes death
or serious bodily injury to a peace officer shall be punished by
imprisonment in the state prison for two, three, or four years, or by
a fine of not less than one thousand dollars ($1,000) or more than
ten thousand dollars ($10,000), or by both  that fine and
imprisonment, or by imprisonment in a county jail for not more than
one year, or by a fine of not more than one thousand dollars
($1,000), or by both  that fine and imprisonment.
   (b) For purposes of subdivision (a), the following facts shall be
found by the trier of fact:
   (1) That the peace officer's action was reasonable based on the
facts or circumstances confronting the officer at the time.
   (2) That the detention and arrest was lawful and there existed
probable cause or reasonable cause to detain.
   (3) That the person who willfully resisted any peace officer knew
or reasonably should have known that the other person was a peace
officer engaged in the performance of his or her duties.
   (c) This section  does not apply to conduct that occurs during
labor picketing, demonstrations, or disturbing the peace.
   (d) For purposes of this section, "serious bodily injury" is
defined in paragraph (4) of subdivision (f) of Section 243.
  SEC. 138.  Section 290 of the Penal Code is amended to read:
   290.  (a) (1) (A) Every person described in paragraph (2), for the
rest of his or her life while residing in, or, if he or she has no
residence while located within, California, shall be required to
register, within five working days of coming into, or changing his or
her residence in, or location within, any city, county, or city and
county, or campus in which he or she temporarily resides, or in which
he or she is located if he or she has no residence, as follows:
   (i) With the chief of police of the city in which either he or she
is residing, or within which he or she is located if he or she has
no residence.
   (ii) In an unincorporated area or city that has no police
department, with the sheriff of the county if he or she is residing,
or within which he or she is located if he or she has no residence.
   (iii) In addition to clause (i) or (ii), with the chief of police
of a campus of the University of California, the California State
University, or community college at which he or she is residing, or
within which he or she is located, including within any of the
facilities of the campus, if he or she has no residence.
   (B) If the person who is registering has no residence address, he
or she shall update his or her registration no less than once every
90 days in addition to the requirement in subparagraph (A), on a form
as may be required by the Department of Justice, with the entity or
entities described in subparagraph (A) in whose jurisdiction he or
she is located at the time he or she is updating the registration.
   (C) Beginning on his or her first birthday following registration
or change of address, the person shall be required to register
annually, within five working days of his or her birthday, to update
his or her registration with the entities described in subparagraph
(A), including verifying his or her name and address, or temporary
location, on a form as may be required by the Department of Justice.

   (D) In addition, every person who is a sexually violent predator,
as defined in Section 6600 of the Welfare and Institutions Code,
shall, after his or her release from custody, verify his or her
address no less than once every 90 days in a manner established by
the Department of Justice.
   (E) No entity shall require a person to pay a fee to register or
update his or her registration pursuant to this section.  The
registering agency shall submit registrations, including annual
updates or changes of address, directly into the Department of
Justice Violent Crime Information Network (VCIN).
   (2) The following persons shall be required to register pursuant
to paragraph (1):
   (A) Any person who, since July 1, 1944, has been, or hereafter is,
convicted in any court in this state or in any federal or military
court of a violation of Section 207 or 209 committed with intent to
violate Section 261, 286, 288, 288a, or 289, Section 220, except
assault to commit mayhem, Section 243.4, paragraph (1), (2), (3),
(4), or (6) of subdivision (a) of Section 261, or paragraph (1) of
subdivision (a) of Section 262 involving the use of force or violence
for which the person is sentenced to the state prison, Section
264.1, 266, 266c, subdivision (b) of Section 266h, subdivision (b) of
Section 266i, 266j, 267, 269, 285, 286, 288, 288a, 288.5, or 289,
subdivision (b), (c), or (d) of Section 311.2, Section 311.3, 311.4,
311.10, 311.11, or 647.6, former Section 647a, subdivision (c) of
Section 653f, subdivision 1 or 2 of Section 314, any offense
involving lewd or lascivious conduct under Section 272, or any felony
violation of Section 288.2; or any person who since that date has
been, or hereafter is, convicted of the attempt to commit any of the
above-mentioned offenses.
   (B) Any person who, since July 1, 1944, has been, or hereafter is,
released, discharged, or paroled from a penal institution where he
or she was confined because of the commission or attempted commission
of one of the offenses described in subparagraph (A).
   (C) Any person who, since July 1, 1944, has been, or hereafter is,
determined to be a mentally disordered sex offender under Article 1
(commencing with Section 6300) of Chapter 2 of Part 2 of Division 6
of the Welfare and Institutions Code or any person who has been found
guilty in the guilt phase of a trial for an offense for which
registration is required by this section but who has been found not
guilty by reason of insanity in the sanity phase of the trial.
   (D) Any person who, since July 1, 1944, has been, or hereafter is,
convicted in any other court, including any state, federal, or
military court, of any offense which, if committed or attempted in
this state, would have been punishable as one or more of the offenses
described in subparagraph (A) or any person ordered by any other
court, including any state, federal, or military court, to register
as a sex offender for any offense, if the court found at the time of
conviction or sentencing that the person committed the offense as a
result of sexual compulsion or for purposes of sexual gratification.

   (E) Any person ordered by any court to register pursuant to this
section for any offense not included specifically in this section if
the court finds at the time of conviction or sentencing that the
person committed the offense as a result of sexual compulsion or for
purposes of sexual gratification.  The court shall state on the
record the reasons for its findings and the reasons for requiring
registration.
   (F) (i) Notwithstanding any other subdivision, a person who was
convicted before January 1, 1976, under subdivision (a) of Section
286 or Section 288a shall not be required to register pursuant to
this section for that conviction if the conviction was for conduct
between consenting adults that was decriminalized by Chapter 71 of
the Statutes of 1975 or Chapter 1139 of the Statutes of 1976.  The
Department of Justice shall remove that person from the Sex Offender
Registry, and the person is discharged from his or her duty to
register pursuant to the following procedure:
   (I) The person submits to the Department of Justice official
documentary evidence, including court records or police reports, that
demonstrates that the person's conviction pursuant to either of
those sections was for conduct between consenting adults that was
decriminalized; or
   (II) The person submits to the department a declaration stating
that the person's conviction pursuant to either of those sections was
for consensual conduct between adults that has been decriminalized.
The declaration shall be confidential and not a public record, and
shall include the person's name, address, telephone number, date of
birth, and a summary of the circumstances leading to the conviction,
including the date of the conviction and county of the occurrence.
   (III) The department shall determine whether the person's
conviction was for conduct between consensual adults that has been
decriminalized.  If the conviction was for consensual conduct between
adults that has been decriminalized, and the person has no other
offenses for which he or she is required to register pursuant to this
section, the department shall, within 60 days of receipt of those
documents, notify the person that he or she is relieved of the duty
to register, and shall notify the local law enforcement agency with
which the person is registered that he or she has been relieved of
the duty to register.  The local law enforcement agency shall remove
the person's registration from its files within 30 days of receipt of
notification.  If the documentary or other evidence submitted is
insufficient to establish the person's claim, the department shall,
within 60 days of receipt of those documents, notify the person that
his or her claim cannot be established, and that the person shall
continue to register pursuant to this section.  The department shall
provide, upon the person's request, any information relied upon by
the department in making its determination that the person shall
continue to register pursuant to this section.  Any person whose
claim has been denied by the department pursuant to this clause may
petition the court to appeal the department's denial of the person's
claim.
   (ii) On or before July 1, 1998, the department shall make a report
to the Legislature concerning the status of persons who may come
under the provisions of this subparagraph, including the number of
persons who were convicted before January 1, 1976, under subdivision
(a) of Section 286 or Section 288a and are required to register under
this section, the average age of these persons, the number of these
persons who have any subsequent convictions for a registerable sex
offense, and the number of these persons who have sought successfully
or unsuccessfully to be relieved of their duty to register under
this section.
   (b) (1) Any person who is released, discharged, or paroled from a
jail, state or federal prison, school, road camp, or other
institution where he or she was confined because of the commission or
attempted commission of one of the offenses specified in subdivision
(a) or is released from a state hospital to which he or she was
committed as a mentally disordered sex offender under Article 1
(commencing with Section 6300) of Chapter 2 of Part 2 of Division 6
of the Welfare and Institutions Code, shall, prior to discharge,
parole, or release, be informed of his or her duty to register under
this section by the official in charge of the place of confinement or
hospital, and the official shall require the person to read and sign
any form that may be required by the Department of Justice, stating
that the duty of the person to register under this section has been
explained to the person.  The official in charge of the place of
confinement or hospital shall obtain the address where the person
expects to reside upon his or her discharge, parole, or release and
shall report the address to the Department of Justice.
   (2) The official in charge of the place of confinement or hospital
shall give one copy of the form to the person and shall send one
copy to the Department of Justice and one copy to the appropriate law
enforcement agency or agencies having jurisdiction over the place
the person expects to reside upon discharge, parole, or release.  If
the conviction that makes the person subject to this section is a
felony conviction, the official in charge shall, not later than 45
days prior to the scheduled release of the person, send one copy to
the appropriate law enforcement agency or agencies having local
jurisdiction where the person expects to reside upon discharge,
parole, or release; one copy to the prosecuting agency that
prosecuted the person; and one copy to the Department of Justice.
The official in charge of the place of confinement shall retain one
copy.
   (c) Any person who is convicted in this state of the commission or
attempted commission of any of the offenses specified in subdivision
(a) and who is released on probation, granted conditional release
without supervised probation, or discharged upon payment of a fine
shall, prior to release or discharge, be informed of the duty to
register under this section by the probation department, and a
probation officer shall require the person to read and sign any form
that may be required by the Department of Justice, stating that the
duty of the person to register under this section has been explained
to him or her.  The probation officer shall obtain the address where
the person expects to reside upon release or discharge and shall
report within three days the address to the Department of Justice.
The probation officer shall give one copy of the form to the person,
send one copy to the Department of Justice, and forward one copy to
the appropriate law enforcement agency or agencies having local
jurisdiction where the person expects to reside upon his or her
discharge, parole, or release.
   (d) (1) Any person who, on or after January 1, 1986, is discharged
or paroled from the Department of the Youth Authority to the custody
of which he or she was committed after having been adjudicated a
ward of the juvenile court pursuant to Section 602 of the Welfare and
Institutions Code because of the commission or attempted commission
of any offense described in paragraph (3) shall be subject to
registration under the procedures of this section.
   (2) Any person who is discharged or paroled from a facility in
another state that is equivalent to the Department of the Youth
Authority, to the custody of which he or she was committed because of
an offense which, if committed or attempted in this state, would
have been punishable as one or more of the offenses described in
paragraph (3), shall be subject to registration under the procedures
of this section.
   (3) Any person described in this subdivision who committed an
offense in violation of any of the following provisions shall be
required to register pursuant to this section:
   (A) Assault with intent to commit rape, sodomy, oral copulation,
or any violation of Section 264.1, 288, or 289 under Section 220.
   (B) Any offense defined in paragraph (1), (2), (3), (4), or (6) of
subdivision (a) of Section 261, Section 264.1, 266c, or 267,
paragraph (1) of subdivision (b) of, or subdivision (c) or (d) of,
Section 286, Section 288 or 288.5, paragraph (1) of subdivision (b)
of, or subdivision (c) or (d) of, Section 288a, subdivision (a) of
Section 289, or Section 647.6.
   (C) A violation of Section 207 or 209 committed with the intent to
violate Section 261, 286, 288, 288a, or 289.
   (4) Prior to discharge or parole from the Department of the Youth
Authority, any person who is subject to registration under this
subdivision shall be informed of the duty to register under the
procedures set forth in this section.  Department of the Youth
Authority officials shall transmit the required forms and information
to the Department of Justice.
   (5) All records specifically relating to the registration in the
custody of the Department of Justice, law enforcement agencies, and
other agencies or public officials shall be destroyed when the person
who is required to register has his or her records sealed under the
procedures set forth in Section 781 of the Welfare and Institutions
Code.  This subdivision shall not be construed as requiring the
destruction of other criminal offender or juvenile records relating
to the case that are maintained by the Department of Justice, law
enforcement agencies, the juvenile court, or other agencies and
public officials unless ordered by a court under Section 781 of the
Welfare and Institutions Code.
   (e) (1) On or after January 1, 1998, upon incarceration,
placement, or commitment, or prior to release on probation, any
person who is required to register under this section shall
preregister.  The preregistering official shall be the admitting
officer at the place of incarceration, placement, or commitment, or
the probation officer if the person is to be released on probation.
The preregistration shall consist of all of the following:
   (A) A preregistration statement in writing, signed by the person,
giving information that may be required by the Department of Justice.

   (B) The fingerprints and photograph of the person.
   (2) Any person who is preregistered pursuant to this subdivision
is required to be preregistered only once.
   (3) A person described in paragraph (2) of subdivision (a) shall
register, or reregister if the person has previously registered, upon
release from incarceration, placement, or commitment, pursuant to
paragraph (1) of subdivision (a).  The registration shall consist of
all of the following:
   (A) A statement in writing signed by the person, giving
information as may be required by the Department of Justice.
   (B) The fingerprints and photograph of the person.
   (C) The license plate number of any vehicle owned by, regularly
driven by, or registered in the name of, the person.
   (D) Notice to the person that, in addition to the requirements of
subdivision (f), he or she may have a duty to register in any other
state where he or she may relocate.
   (E) Copies of adequate proof of residence, which shall be limited
to a California driver's license, California identification card,
recent rent or utility receipt, printed personalized checks or other
recent banking documents showing that person's name and address, or
any other information that the registering official believes is
reliable.  If the person has no residence and no reasonable
expectation of obtaining a residence in the foreseeable future, the
person shall so advise the registering official and shall sign a
statement provided by the registering official stating that fact.
Upon presentation of proof of residence to the registering official
or a signed statement that the person has no residence, the person
shall be allowed to register.  If the person claims that he or she
has a residence but does not have any proof of residence, he or she
shall be allowed to register but shall furnish proof of residence
within 30 days of the day he or she is allowed to register.  If a
registrant fails to furnish proof of residence within this 30-day
period, he or she shall be guilty of a misdemeanor.
   (4) Within three days thereafter, the preregistering official or
the registering law enforcement agency or agencies shall forward the
statement, fingerprints, photograph, and vehicle license plate
number, if any, to the Department of Justice.
   (f) (1) If any person who is required to register pursuant to this
section changes his or her residence address or location, whether
within the jurisdiction in which he or she is currently registered or
to a new jurisdiction inside or outside the state, the person shall
inform, in writing within five working days, the law enforcement
agency or agencies with which he or she last registered of the new
address or location.  The law enforcement agency or agencies shall,
within three days after receipt of this information, forward a copy
of the change of address or location information to the Department of
Justice.  The Department of Justice shall forward appropriate
registration data to the law enforcement agency or agencies having
local jurisdiction of the new place of residence or location.
   (2) If the person's new address is in a Department of the Youth
Authority facility or a state prison or state mental institution, an
official of the place of incarceration, placement, or commitment
shall, within 90 days of receipt of the person, forward the
registrant's change of address information to the Department of
Justice.  The agency need not provide a physical address for the
registrant but shall indicate that he or she is serving a period of
incarceration or commitment in a facility under the agency's
jurisdiction.  This paragraph shall apply to persons received in a
Department of the Youth Authority facility or a state prison or state
mental institution on or after January 1, 1999.  The Department of
Justice shall forward the change of address information to the agency
with which the person last registered.
   (3) If any person who is required to register pursuant to this
section changes his or her name, the person shall inform, in person,
the law enforcement agency or agencies with which he or she is
currently registered within five working days.  The law enforcement
agency or agencies shall forward a copy of this information to the
Department of Justice within three days of its receipt.
   (g) (1) Any person who is required to register under this section
based on a misdemeanor conviction who willfully violates any
requirement of this section is guilty of a misdemeanor punishable by
imprisonment in a county jail not exceeding one year.
   (2) Except as provided in paragraph (5), any person who is
required to register under this section based on a felony conviction
who willfully violates any requirement of this section or who has a
prior conviction for the offense of failing to register under this
section and who subsequently and willfully violates any requirement
of this section is guilty of a felony and shall be punished by
imprisonment in the state prison for 16 months, or two or three
years.
   If probation is granted or if the imposition or execution of
sentence is suspended, it shall be a condition of the probation or
suspension that the person serve at least 90 days in a county jail.
The penalty described in this paragraph shall apply whether or not
the person has been released on parole or has been discharged from
parole.
   (3) Any person determined to be a mentally disordered sex offender
or who has been found guilty in the guilt phase of trial for an
offense for which registration is required under this section, but
who has been found not guilty by reason of insanity in the sanity
phase of the trial, who willfully violates any requirement of this
section is guilty of a misdemeanor and shall be punished by
imprisonment in a county jail not exceeding one year.  For any second
or subsequent willful violation of any requirement of this section,
the person is guilty of a felony and shall be punished by
imprisonment in the state prison for 16 months, or two or three
years.
   (4) If, after discharge from parole, the person is convicted of a
felony as specified in this subdivision, he or she shall be required
to complete parole of at least one year, in addition to any other
punishment imposed under this subdivision.  A person convicted of a
felony as specified in this subdivision may be granted probation only
in the unusual case where the interests of justice would best be
served.  When probation is granted under this paragraph, the court
shall specify on the record and shall enter into the minutes the
circumstances indicating that the interests of justice would best be
served by the disposition.
   (5) Any person who, as a sexually violent predator, as defined in
Section 6600 of the Welfare and Institutions Code, fails to verify
his or her registration every 90 days as required pursuant to
subparagraph (D) of paragraph (1) of subdivision (a), shall be
punished by imprisonment in the state prison, or in a county jail,
not exceeding one year.
   (6) Except as otherwise provided in paragraph (5), and in addition
to any other penalty imposed under this subdivision, any person who
is required pursuant to subparagraph (B) of paragraph (1) of
subdivision (a) to update his or her registration every 90 days and
willfully fails to update his or her registration is guilty of a
misdemeanor and shall be punished by imprisonment in a county jail
not exceeding six months.  Any subsequent violation of this
requirement that persons described in  subparagraph (B) of paragraph
(1) of subdivision (a) shall update their registration every 90 days
is also a misdemeanor and shall be punished by imprisonment in a
county jail not exceeding six months.
   (7) Any person who is required to register under this section who
willfully violates any requirement of this section is guilty of a
continuing offense.
   (h) Whenever any person is released on parole or probation and is
required to register under this section but fails to do so within the
time prescribed, the parole authority, the Youthful Offender Parole
Board, or the court, as the case may be, shall order the parole or
probation of the person revoked.  For purposes of this subdivision,
"parole authority" has the same meaning as described in Section 3000.

   (i) Except as provided in subdivisions (m) and (n) and Section
290.4, the statements, photographs, and fingerprints required by this
section shall not be open to inspection by the public or by any
person other than a regularly employed peace officer or other law
enforcement officer.
                                                                  (j)
In any case in which a person who would be required to register
pursuant to this section for a felony conviction is to be temporarily
sent outside the institution where he or she is confined on any
assignment within a city or county including firefighting, disaster
control, or of whatever nature the assignment may be, the local law
enforcement agency having jurisdiction over the place or places where
the assignment shall occur shall be notified within a reasonable
time prior to removal from the institution.  This subdivision shall
not apply to any person who is temporarily released under guard from
the institution where he or she is confined.
   (k) As used in this section, "mentally disordered sex offender"
includes any person who has been determined to be a sexual psychopath
or a mentally disordered sex offender under any provision which, on
or before January 1, 1976, was contained in Division 6 (commencing
with Section 6000) of the Welfare and Institutions Code.
   (l) (1) Every person who, prior to January 1, 1997, is required to
register under this section, shall be notified whenever he or she
next reregisters of the reduction of the registration period from 14
to 5 working days.  This notice shall be provided in writing by the
registering agency or agencies.  Failure to receive this notification
shall be a defense against the penalties prescribed by subdivision
(g) if the person did register within 14 days.
   (2) Every person who, as a sexually violent predator, as defined
in Section 6600 of the Welfare and Institutions Code, is required to
verify his or her registration every 90 days, shall be notified
wherever he or she next registers of his or her increased
registration obligations.  This notice shall be provided in writing
by the registering agency or agencies.  Failure to receive this
notice shall be a defense against the penalties prescribed by
paragraph (5) of subdivision (g).
   (m) (1) When a peace officer reasonably suspects, based on
information that has come to his or her attention through information
provided by any peace officer or member of the public, that a child
or other person may be at risk from a sex offender convicted of a
crime listed in paragraph (1) of subdivision (a) of Section 290.4, a
law enforcement agency may, notwithstanding any other provision of
law, provide any of the information specified in paragraph  (4) of
this subdivision about that registered sex offender that the agency
deems relevant and necessary to protect the public, to the following
persons, agencies, or organizations the offender is likely to
encounter, including, but not limited to, the following:
   (A) Public and private educational institutions, day care
establishments, and establishments and organizations that primarily
serve individuals likely to be victimized by the offender.
   (B) Other community members at risk.
   (2) The law enforcement agency may authorize persons and entities
who receive the information pursuant to paragraph (1) to disclose
information to additional persons only if the agency does the
following:
   (A) Determines that all conditions set forth in paragraph (1) have
been satisfied regarding disclosure to the additional persons.
   (B) Identifies the appropriate scope of further disclosure.
   (3) Persons notified pursuant to paragraph (1) may disclose the
information provided by the law enforcement agency in the manner and
to the extent authorized by the law enforcement agency.
   (4) The information that may be disclosed pursuant to this section
includes the following:
   (A) The offender's full name.
   (B) The offender's known aliases.
   (C) The offender's gender.
   (D) The offender's race.
   (E) The offender's physical description.
   (F) The offender's photograph.
   (G) The offender's date of birth.
   (H) Crimes resulting in registration under this section.
   (I) The offender's address, which must be verified prior to
publication.
   (J) Description and license plate number of offender's vehicles or
vehicles the offender is known to drive.
   (K) Type of victim targeted by the offender.
   (L) Relevant parole or probation conditions, such as one
prohibiting contact with children.
   (M) Dates of crimes resulting in classification under this
section.
   (N) Date of release from confinement.
   However, information disclosed pursuant to this subdivision shall
not include information that would identify the victim.
   (5) If a law enforcement agency discloses information pursuant to
this subdivision, it shall include, with the disclosure, a statement
that the purpose of the release of the information is to allow
members of the public to protect themselves and their children from
sex offenders.
   (6) For purposes of this section, "likely to encounter" means both
of the following:
   (A) That the agencies, organizations, or other community members
are in a location or in close proximity to a location where the
offender lives or is employed, or that the offender visits or is
likely to visit on a regular basis.
   (B) The types of interaction that ordinarily occur at that
location and other circumstances indicate that contact with the
offender is reasonably probable.
   (7) For purposes of this section, "reasonably suspects" means that
it is objectively reasonable for a peace officer to entertain a
suspicion, based upon facts that could cause a reasonable person in a
like position, drawing when appropriate on his or her training and
experience, to suspect that a child or other person is at risk.
   (8) For purposes of this section, "at risk" means that a person
is, or may be exposed to, a risk of becoming a victim of a sex
offense committed by the offender.
   (9) A law enforcement agency may continue to disclose information
about an offender under this subdivision for as long as the offender
is included in Section 290.4.
   (n) In addition to the procedures set forth elsewhere in this
section, a designated law enforcement entity may advise the public of
the presence of high-risk sex offenders in its community pursuant to
this subdivision.
   (1) For purposes of this subdivision:
   (A) A high-risk sex offender is a person who has been convicted of
an offense specified in paragraph (1) of subdivision (a) of Section
290.4 and meets any of the following criteria:
   (i) Has been convicted of three or more violent sex offenses, at
least two of which were brought and tried separately.
   (ii) Has been convicted of two violent sex offenses and one or
more violent nonsex offenses, at least two of which were brought and
tried separately.
   (iii) Has been convicted of one violent sex offense and two or
more violent nonsex offenses, at least two of which were brought and
tried separately.
   (iv) Has been convicted of either two violent sex offenses or one
violent sex offense and one violent nonsex offense, at least two of
which were brought and tried separately, and has been arrested on
separate occasions for three or more violent sex offenses, violent
nonsex offenses, or associated offenses.
   (v) Has been adjudicated a sexually violent predator pursuant to
Article 4 (commencing with Section 6600) of Chapter 2 of Part 2 of
Division 6 of the Welfare and Institutions Code.
   (B) A violent sex offense means any offense defined in Section
220, except attempt to commit mayhem, 261, 264.1, 286, 288, 288a,
288.5, 289, or 647.6, or infliction of great bodily injury during the
commission of a sex offense, as provided in Section 12022.8.
   (C) A violent nonsex offense means any offense defined in Section
187, subdivision (a) of Section 192, or Section 203, 206, 207, or
236, provided that the offense is a felony, subdivision (a) of
Section 273a, Section 273d or 451, or attempted murder, as defined in
Sections 187 and 664.
   (D) An associated offense means any offense defined in Section
243.4, provided that the offense is a felony, Section 311.1, 311.2,
311.3, 311.4, 311.5, 311.6, 311.7, or 314, Section 459, provided the
offense is of the first degree, Section 597 or 646.9, subdivision
(d), (h), or (i) of Section 647, Section 653m, or infliction of great
bodily injury during the commission of a felony, as defined in
Section 12022.7.
   (E) For purposes of subparagraphs (B) to (D), inclusive, an arrest
or conviction for the statutory predecessor of any of the enumerated
offenses, or an arrest or conviction in any other jurisdiction for
any offense that, if committed or attempted in this state, would have
been punishable as one or more of the offenses described in those
subparagraphs, is to be considered in determining whether an offender
is a high-risk sex offender.
   (F) For purposes of subparagraphs (B) to (D), inclusive, an arrest
as a juvenile or an adjudication as a ward of the juvenile court
within the meaning of Section 602 of the Welfare and Institutions
Code for any of the offenses described in those subparagraphs is to
be considered in determining whether an offender is a high-risk sex
offender.
   (G) Notwithstanding subparagraphs (A) to (D), inclusive, an
offender shall not be considered to be a high-risk sex offender if
either of the following apply:
   (i) The offender's most recent conviction or arrest for an offense
described in subparagraphs (B) to (D), inclusive, occurred more than
five years prior to the high-risk assessment by the Department of
Justice, excluding periods of confinement.
   (ii) The offender notifies the Department of Justice, on a form
approved by the department and available at any sheriff's office,
that he or she has not been convicted in the preceding 15 years,
excluding periods of confinement, of an offense for which
registration is required under paragraph (2) of subdivision (a), and
the department is able, upon exercise of reasonable diligence, to
verify the information provided in paragraph (2).
   (H) "Confinement" means confinement in a jail, prison, school,
road camp, or other penal institution, confinement in a state
hospital to which the offender was committed as a mentally disordered
sex offender under Article 1 (commencing with Section 6300) of
Chapter 2 of Part 2 of Division 6 of the Welfare and Institutions
Code, or confinement in a facility designated by the Director of
Mental Health to which the offender was committed as a sexually
violent predator under Article 4 (commencing with Section 6600) of
Chapter 2 of Part 2 of Division 6 of the Welfare and Institutions
Code.
   (I) "Designated law enforcement entity" means any of the
following:  a municipal police department, sheriff's department,
district attorney's office, county probation department, Department
of Justice, Department of Corrections, Department of the Youth
Authority, Department of the California Highway Patrol, or the police
department of any campus of the University of California, the
California State University, or any community college.
   (2) The Department of Justice shall continually search the records
provided to it pursuant to subdivision (b) and identify, on the
basis of those records, high-risk sex offenders.  Four times each
year, the department shall provide to each chief of police and
sheriff in the state, and to any other designated law enforcement
entity upon request, the following information regarding each
identified high-risk sexual offender:  full name, known aliases,
gender, race, physical description, photograph, date of birth, and
crimes resulting in classification under this section.
   (3) The Department of Justice and any designated law enforcement
entity to which notice has been given pursuant to paragraph (2) may
cause to be made public, by whatever means the agency deems necessary
to ensure the public safety, based upon information available to the
agency concerning a specific person, including, but not limited to,
the information described in paragraph (2); the offender's address,
which shall be verified prior to publication; description and license
plate number of the offender's vehicles or vehicles the offender is
known to drive; type of victim targeted by the offender; relevant
parole or probation conditions, such as one prohibiting contact with
children; dates of crimes resulting in classification under this
section; and date of release from confinement; but excluding
information that would identify the victim.
   (4) Notwithstanding any other provision of law, any person
described in paragraph (2) of subdivision (p) who receives
information from a designated law enforcement entity pursuant to
paragraph (3) of subdivision (n) may disclose that information in the
manner and to the extent authorized by the law enforcement entity.
   (o) Agencies disseminating information to the public pursuant to
Section 290.4 shall maintain records of those persons requesting to
view the CD-ROM or other electronic media for a minimum of five
years.  Agencies disseminating information to the public pursuant to
subdivision (n) shall maintain records of the means and dates of
dissemination for a minimum of five years.
   (p) (1) Any law enforcement agency and employees of any law
enforcement agency shall be immune from liability for good faith
conduct under this section.  For the purposes of this section, "law
enforcement agency" means the Attorney General of California, every
district attorney, and every state or local agency expressly
authorized by statute to investigate or prosecute law violators.
   (2) Any public or private educational institution, day care
facility, or any child care custodian described in Section 11165.7,
or any employee of a public or private educational institution or day
care facility which in good faith disseminates information as
authorized pursuant to paragraph (3) of subdivision (m) or paragraph
(4) of subdivision (n) that is provided by a law enforcement agency
or an employee of a law enforcement agency shall be immune from civil
liability.
   (q) Any person who uses information disclosed pursuant to this
section to commit a felony shall be punished, in addition and
consecutive to any other punishment, by a five-year term of
imprisonment in the state prison.  Any person who uses information
disclosed pursuant to this section to commit a misdemeanor shall be
subject to, in addition to any other penalty or fine imposed, a fine
of not less than five hundred dollars ($500) and not more than one
thousand dollars ($1,000).
   (r) The registration and public notification provisions of this
section are applicable to every person described in this section,
without regard to when his or her crimes were committed or his or her
duty to register pursuant to this section arose, and to every
offense described in this section, regardless of when it was
committed.
  SEC. 139.  Section 298 of the Penal Code is amended to read:
   298.  (a) The Director of Corrections, or the Chief Administrative
Officer of the detention facility, jail, or other facility at which
the blood specimens, saliva samples, and thumb and palm print
impressions were collected shall cause these specimens, samples, and
print impressions to be forwarded promptly to the Department of
Justice.  The specimens, samples, and print impressions shall be
collected by a person using a Department of Justice approved
collection kit and in accordance with the requirements and procedures
set forth in subdivision (b).
   (b) (1) The Department of Justice shall provide all blood specimen
vials, mailing tubes, labels, and instructions for the collection of
the blood specimens, saliva samples, and thumbprints.  The
specimens, samples, and thumbprints shall thereafter be forwarded to
the DNA Laboratory of the Department of Justice for analysis of DNA
and other forensic identification markers.
   Additionally, the Department of Justice shall provide all full
palm print cards, mailing envelopes, and instructions for the
collection of full palm prints.  The full palm prints, on a form
prescribed by the Department of Justice, shall thereafter be
forwarded to the Department of Justice for maintenance in a file for
identification purposes.
   (2) The withdrawal of blood shall be performed in a medically
approved manner.  Only health care providers trained and certified to
draw blood may withdraw the blood specimens for purposes of this
section.
   (3) Right thumbprints and a full palm print impression of each
hand shall be taken on forms prescribed by the Department of Justice.
  The palm print forms shall be forwarded to and maintained by the
Bureau of Criminal Identification and Information of the Department
of Justice.  Right thumbprints also shall be taken at the time of the
withdrawal of blood and shall be placed on the forms and the blood
vial label.  The blood vial and thumbprint forms shall be forwarded
to and maintained by the DNA Laboratory of the Department of Justice.

   (4) The DNA  Laboratory of the Department of Justice is
responsible for establishing procedures for entering data bank and
data base information.
   (c) (1) Persons authorized to draw blood under this chapter for
the data bank or data base shall not be civilly or criminally liable
either for withdrawing blood when done in accordance with medically
accepted procedures, or for obtaining saliva samples or thumb or palm
print impressions when performed in accordance with standard
professional practices.
   (2) There is no civil or criminal cause of action against any law
enforcement agency or the Department of Justice, or any employee
thereof, for a mistake in placing an entry in a data bank or a data
base.
  SEC. 140.  Section 299 of the Penal Code is amended to read:
   299.  (a) A person whose DNA profile has been included in the data
bank pursuant to this chapter shall have his or her information and
materials expunged from the data bank when the underlying conviction
or disposition serving as the basis for including the DNA profile has
been reversed and the case dismissed, the defendant has been found
factually innocent of the underlying offense pursuant to Section
851.8, the defendant has been found not guilty, or the defendant has
been acquitted of the underlying offense.  The court issuing the
reversal, dismissal, or acquittal shall order the expungement and
shall send a copy of that order to the Department of Justice DNA
Laboratory Director.  Upon receipt of the court order, the Department
of Justice shall expunge all identifiable information in the data
bank and any criminal identification records pertaining to the
person.
   (b) (1) A person whose DNA profile has been included in a data
bank pursuant to this chapter may make a written request to expunge
information and materials from the data bank.  The person requesting
the data bank entry to be expunged must send a copy of his or her
request to the trial court that entered the conviction or rendered
disposition in the case, to the DNA Laboratory of the Department of
Justice, and to the prosecuting attorney of the county in which he or
she was convicted, with proof of service on all parties.  The court
has the discretion to grant or deny the request for expungement.  The
denial of a request for expungement is a nonappealable order and
shall not be reviewed by petition for writ.
   (2) Except as provided below, the Department of Justice shall
expunge all identifiable information in the data bank and any
criminal identification records pertaining to the person upon receipt
of a court order that verifies the applicant has made the necessary
showing at a noticed hearing, and that includes all of the following:

   (A) The written request for expungement pursuant to this section.

   (B) A certified copy of the court order reversing and dismissing
the conviction, or a letter from the district attorney certifying
that the defendant has been found factually innocent, the defendant
has been found not guilty, the defendant has been acquitted of the
underlying offense, or the underlying conviction has been reversed
and the case dismissed.
   (C) Proof of written notice to the prosecuting attorney and the
Department of Justice that expungement has been requested.
   (D) A court order verifying that no retrial or appeal of the case
is pending, that it has been at least 180 days since the defendant
notified the prosecuting attorney and the Department of Justice of
the expungement request, and that the court has not received an
objection from the Department of Justice or the prosecuting attorney.

   (c) Upon order of the court, the Department of Justice shall
destroy any specimen or sample collected from the person and any
criminal identification records pertaining to the person, unless the
department determines that the person has otherwise become obligated
to submit a blood specimen as a result of a separate conviction,
juvenile adjudication, or finding of guilty or not guilty by reason
of insanity for an offense described in subdivision (a) of Section
296, or as a condition of a plea.
   The Department of Justice is not required to destroy an
autoradiograph or other item obtained from a blood specimen if
evidence relating to another person subject to the provisions of this
chapter would thereby be destroyed.
   Any identification, warrant, probable cause to arrest, or arrest
based upon a data bank match is not invalidated due to a failure to
expunge or a delay in expunging records.
   (d) The DNA  Laboratory of the Department of Justice shall review
its data bank to determine whether it contains DNA profiles from
persons who are no longer suspects in a criminal case.  Evidence
accumulated pursuant to this chapter from any crime scene with
respect to a particular person shall be stricken from the data bank
when it is determined that the person is no longer a suspect in the
case.
  SEC. 141.  Section 299.6 of the Penal Code is amended to read:
   299.6.  (a)  This chapter  does not prohibit the sharing or
disseminating of population data base or data bank information with
any of the following:
   (1) Federal, state, or local law enforcement agencies.
   (2) Crime laboratories, whether public or private, that serve
federal, state, and local law enforcement agencies that have been
approved by the Department of Justice.
   (3) The attorney general's office of any state.
   (4) Any third party that the Department of Justice deems necessary
to assist the department's crime laboratory with statistical
analyses of the population data base or to assist in the recovery or
identification of human remains for humanitarian purposes, including
identification of missing persons.
   (b)  This chapter  does not prohibit the sharing or disseminating
of protocol and forensic DNA analysis methods and quality control
procedures with any of the following:
   (1) Federal, state, or local law enforcement agencies.
   (2) Crime laboratories, whether public or private, that serve
federal, state, and local law enforcement agencies that have been
approved by the Department of Justice.
   (3) The attorney general's office of any state.
   (4) Any third party that the Department of Justice deems necessary
to assist the department's crime laboratory with analyses of
forensic protocol, research methods, or quality control procedures.
   (c) The population data base and data bank of the DNA Laboratory
of the Department of Justice may be made available to and searched by
the FBI and any other agency participating in the FBI's CODIS
System.
   (d) The Department of Justice may provide portions of the blood
specimens and saliva samples collected pursuant to this chapter to
local public DNA laboratories for identification purposes, provided
that the privacy provisions of this section are followed by the local
laboratory and that all of the following conditions are met:
   (1) The procedures used by the local public DNA laboratory for the
handling of specimens and samples and the disclosure of results are
the same as those established by the Department of Justice pursuant
to Sections 297, 298, and 299.5.
   (2) The methodologies and procedures used by the local public DNA
laboratory for DNA or forensic identification analysis are compatible
with those established by the Department of Justice pursuant to
subdivision (i) of Section 299.5, or otherwise are determined by the
Department of Justice to be valid and appropriate for identification
purposes.
   (3) Only tests of value to law enforcement for identification
purposes are performed, and a copy of the results of the analysis is
sent to the Department of Justice.
   (4) All provisions of this section concerning privacy and security
are followed.
   (5) The local public DNA laboratory assumes all costs of securing
the specimens and samples and provides appropriate tubes, labels, and
instructions necessary to secure the samples.
   (e) Any local public DNA laboratory that collects DNA typing
information shall comply with and be subject to all of the rules,
regulations, and restrictions of this chapter and shall follow the
policies of the DNA Laboratory of the Department of Justice.
  SEC. 142.  Section 350 of the Penal Code is amended to read:
   350.  (a) Any person who willfully manufactures, intentionally
sells, or knowingly possesses for sale any counterfeit of a mark
registered with the Secretary of State or registered on the Principal
Register of the United States Patent and Trademark Office, shall,
upon conviction, be punishable as follows:
   (1) When the offense involves less than 1,000 of the articles
described in this subdivision, with a total retail or fair market
value less than that required for grand theft as defined in Section
487, and if the person is an individual, he or she shall be punished
by a fine of not more than five thousand dollars ($5,000), or by
imprisonment in a county jail for not more than one year, or by both
that fine and imprisonment; or, if the person is a corporation, by a
fine of not more than one hundred thousand dollars ($100,000).
   (2) When the offense involves 1,000 or more of the articles
described in this subdivision, or has a total retail or fair market
value equal to or greater than that required for grand theft as
defined in Section 487, and if the person is an individual, he or she
shall be punished by imprisonment in a county jail not to exceed one
year, or in the state prison for 16 months, or two or three years,
or by a fine not to exceed two hundred fifty thousand dollars
($250,000), or by both that imprisonment and fine; or, if the person
is a corporation, by a fine not to exceed five hundred thousand
dollars ($500,000).
   (b) Any person who has been convicted of a violation of either
paragraph (1) or (2) of subdivision (a) shall, upon a subsequent
conviction of paragraph (1) of subdivision (a), if the person is an
individual, be punished by a fine of not
              more than fifty thousand dollars ($50,000), or by
imprisonment in a county jail for not more than one year, or in the
state prison for 16 months, or two or three years, or by both that
fine and imprisonment; or, if the person is a corporation, by a fine
of not more than two hundred thousand dollars ($200,000).
   (c) Any person who has been convicted of a violation of
subdivision (a) and who, by virtue of the conduct that was the basis
of the conviction, has directly and foreseeably caused death or great
bodily injury to another through reliance on the counterfeited item
for its intended purpose shall, if the person is an individual, be
punished by a fine of not more than fifty thousand dollars ($50,000),
or by imprisonment in the state prison for two, three, or four
years, or by both that fine and imprisonment; or, if the person is a
corporation, by a fine of not more than two hundred thousand dollars
($200,000).
   (d) In any action brought under this section resulting in a
conviction or a plea of nolo contendere, the court shall order the
forfeiture and destruction of all of those marks and of all goods,
articles, or other matter bearing the marks, and the forfeiture and
destruction or other disposition of all means of making the marks,
and any and all electrical, mechanical, or other devices for
manufacturing, reproducing, transporting, or assembling these marks,
that were used in connection with, or were part of, any violation of
this section.  However, no vehicle shall be forfeited under this
section that may be lawfully driven on the highway with a class 3 or
4 license, as prescribed in Section 12804 of the Vehicle Code, and
that is any of the following:
   (1) A community property asset of a person other than the
defendant.
   (2) The sole class 3 or 4 vehicle available to the immediate
family of that person or of the defendant.
   (3)  Reasonably necessary to be retained by the defendant for the
purpose of lawfully earning a living, or for any other reasonable and
lawful purpose.
   (e) For the purposes of this section, the following definitions
shall apply:
   (1) When counterfeited but unassembled components of computer
software packages are recovered, including, but not limited to,
counterfeited computer diskettes, instruction manuals, or licensing
envelopes, the number of "articles" shall be equivalent to the number
of completed computer software packages that could have been made
from those components.
   (2) "Counterfeit mark" means a spurious mark that is identical
with, or confusingly similar to, a registered mark and is used on or
in connection with the same type of goods or services for which the
genuine mark is registered.  It is not necessary for the mark to be
displayed on the outside of an article for there to be a violation.
For articles containing digitally stored information, it shall be
sufficient to constitute a violation if the counterfeit mark appears
on a video display when the information is retrieved from the
article.  The term "spurious mark" includes genuine marks used on or
in connection with spurious articles and includes identical articles
containing identical marks, where the goods or marks were reproduced
without authorization of, or in excess of any authorization granted
by, the registrant.
   (3) "Knowingly possess" means that the person possessing an
article knew or had reason to believe that it was spurious, or that
it was used on or in connection with spurious articles, or that it
was reproduced without authorization of, or in excess of any
authorization granted by, the registrant.
   (4) "Registrant" means any person to whom the registration of a
mark is issued and that person's legal representatives, successors,
or assigns.
   (5) "Sale" includes resale.
   (6) "Value" has the following meanings:
   (A) When counterfeit items of computer software are manufactured
or possessed for sale, the "value" of those items shall be equivalent
to the retail price or fair market price of the true items that are
counterfeited.
   (B) When counterfeited but unassembled components of computer
software packages are recovered, including, but not limited to,
counterfeited digital disks, instruction manuals, or licensing
envelopes, the "value" of those components of computer software
packages shall be equivalent to the retail price or fair market value
of the number of completed computer software packages that could
have been made from those components.
   (C) "Retail or fair market value" of a counterfeit article means a
value equivalent to the retail price or fair market value, as of the
last day of the charged crime, of a completed similar genuine
article containing a genuine mark.
   (f) This section shall not be enforced against any party who has
adopted and lawfully used the same or confusingly similar mark in the
rendition of like services or the manufacture or sale of like goods
in this state from a date prior to the earliest effective date of
registration of the service mark or trademark either with the
Secretary of State or on the Principle Register of the United States
Patent and Trademark Office.
   (g) An owner, officer, employee, or agent who provides, rents,
leases, licenses, or sells real property upon which a violation of
subdivision (a) occurs shall not be subject to a criminal penalty
pursuant to this section, unless he or she sells, or possesses for
sale, articles bearing a counterfeit mark in violation of this
section.  This subdivision shall not be construed to abrogate or
limit any civil rights or remedies for a trademark violation.
  SEC. 143.  Section 550 of the Penal Code is amended to read:
   550.  (a) It is unlawful to do any of the following, or to aid,
abet, solicit, or conspire with any person to do any of the
following:
   (1) Knowingly present or cause to be presented any false or
fraudulent claim for the payment of a loss or injury, including
payment of a loss or injury under a contract of insurance.
   (2) Knowingly present multiple claims for the same loss or injury,
including presentation of multiple claims to more than one insurer,
with an intent to defraud.
   (3) Knowingly cause or participate in a vehicular collision, or
any other vehicular accident, for the purpose of presenting any false
or fraudulent claim.
   (4) Knowingly present a false or fraudulent claim for the payments
of a loss for theft, destruction, damage, or conversion of a motor
vehicle, a motor vehicle part, or contents of a motor vehicle.
   (5) Knowingly prepare, make, or subscribe any writing, with the
intent to present or use it, or to allow it to be presented, in
support of any false or fraudulent claim.
   (6) Knowingly make or cause to be made any false or fraudulent
claim for payment of a health care benefit.
   (7) Knowingly submit a claim for a health care benefit that was
not used by, or on behalf of, the claimant.
   (8) Knowingly present multiple claims for payment of the same
health care benefit with an intent to defraud.
   (9) Knowingly present for payment any undercharges for health care
benefits on behalf of a specific claimant unless any known
overcharges for health care benefits for that claimant are presented
for reconciliation at that same time.
   (10) For purposes of paragraphs (6) to (9), inclusive, a claim or
a claim for payment of a health care benefit also means a claim or
claim for payment submitted by or on the behalf of a provider of any
workers' compensation health benefits under the Labor Code.
   (b) It is unlawful to do, or to knowingly assist or conspire with
any person to do, any of the following:
   (1) Present or cause to be presented any written or oral statement
as part of, or in support of or opposition to, a claim for payment
or other benefit pursuant to an insurance policy, knowing that the
statement contains any false or misleading information concerning any
material fact.
   (2) Prepare or make any written or oral statement that is intended
to be presented to any insurer or any insurance claimant in
connection with, or in support of or opposition to, any claim or
payment or other benefit pursuant to an insurance policy, knowing
that the statement contains any false or misleading information
concerning any material fact.
   (3) Conceal, or knowingly fail to disclose the occurrence of, an
event that affects any person's initial or continued right or
entitlement to any insurance benefit or payment, or the amount of any
benefit or payment to which the person is entitled.
   (4) Prepare or make any written or oral statement, intended to be
presented to any insurer or producer for the purpose of obtaining a
motor vehicle insurance policy, that the person to be the insured
resides or is domiciled in this state when, in fact, that person
resides or is domiciled in a state other than this state.
   (c) (1) Every person who violates paragraph (1), (2), (3), (4), or
(5) of subdivision (a) is guilty of a felony punishable by
imprisonment in the state prison for two, three, or five years, and
by a fine not exceeding fifty thousand dollars ($50,000), unless the
value of the fraud exceeds fifty thousand dollars ($50,000), in which
event the fine may not exceed double of the value of the fraud.
   (2) Every person who violates paragraph (6), (7), (8), or (9) of
subdivision (a) is guilty of a public offense.
   (A) Where the claim or amount at issue exceeds four hundred
dollars ($400), the offense is punishable by imprisonment in the
state prison for two, three, or five years, or by a fine not
exceeding fifty thousand dollars ($50,000), or by both that
imprisonment and fine, unless the value of the fraud exceeds fifty
thousand dollars ($50,000), in which event the fine may not exceed
double the value of the fraud, or by imprisonment in a county jail
not to exceed one year, by a fine of not more than one thousand
dollars ($1,000), or by both that imprisonment and fine.
   (B) Where the claim or amount at issue is four hundred dollars
($400) or less, the offense is punishable by imprisonment in a county
jail not to exceed six months, or by a fine of not more than one
thousand dollars ($1,000), or by both that imprisonment and fine,
unless the aggregate amount of the claims or amount at issue exceeds
four hundred dollars ($400) in any 12-consecutive-month period, in
which case the claims or amounts may be charged as in subparagraph
(A).
   (3) Every person who violates paragraph (1), (2), (3), or (4) of
subdivision (b) shall be punished by imprisonment in the state prison
for two, three, or five years, or by a fine not exceeding fifty
thousand dollars ($50,000), unless the value of the fraud exceeds
fifty thousand dollars ($50,000), in which event the fine may not
exceed double the value of the fraud, or by both that imprisonment
and fine ; or by imprisonment in a county jail not to exceed one
year, or by a fine of not more than one thousand dollars ($1,000), or
by both that imprisonment and fine.
   (d) Notwithstanding any other provision of law, probation shall
not be granted to, nor shall the execution or imposition of a
sentence be suspended for, any adult person convicted of felony
violations of this section who previously has been convicted of
felony violations of this section or Section 548, or of Section
1871.4 of the Insurance Code, or former Section 556 of the Insurance
Code, or former Section 1871.1 of the Insurance Code as an adult
under charges separately brought and tried two or more times.  The
existence of any fact that would make a person ineligible for
probation under this subdivision shall be alleged in the information
or indictment, and either admitted by the defendant in an open court,
or found to be true by the jury trying the issue of guilt or by the
court where guilt is established by plea of guilty or nolo contendere
or by trial by the court sitting without a jury.
   Except when the existence of the fact was not admitted or found to
be true or the court finds that a prior felony conviction was
invalid, the court shall not strike or dismiss any prior felony
convictions alleged in the information or indictment.
   This subdivision does not prohibit the adjournment of criminal
proceedings pursuant to Division 3 (commencing with Section 3000) or
Division 6 (commencing with Section 6000) of the Welfare and
Institutions Code.
   (e) Except as otherwise provided in subdivision (f), any person
who violates subdivision (a) or (b) and who has a prior felony
conviction of an offense set forth in either subdivision (a) or (b),
in Section 548, in Section 1871.4 of the Insurance Code, in former
Section 556 of the Insurance Code, or in former Section 1871.1 of the
Insurance Code shall receive a two-year enhancement for each prior
felony conviction in addition to the sentence provided in subdivision
(c).  The existence of any fact that would subject a person to a
penalty enhancement shall be alleged in the information or indictment
and either admitted by the defendant in open court, or found to be
true by the jury trying the issue of guilt or by the court where
guilt is established by plea of guilty or nolo contendere or by trial
by the court sitting without a jury.  Any person who violates this
section shall be subject to appropriate orders of restitution
pursuant to Section 13967 of the Government Code.
   (f) Any person who violates paragraph (3) of subdivision (a) and
who has two prior felony convictions for a violation of paragraph (3)
of subdivision (a) shall receive a five-year enhancement in addition
to the sentence provided in subdivision (c).  The existence of any
fact  that would subject a person to a penalty enhancement shall be
alleged in the information or indictment and either admitted by the
defendant in open court, or found to be true by the jury trying the
issue of guilt or by the court where guilt is established by plea of
guilty or nolo contendere or by trial by the court sitting without a
jury.
   (g) Except as otherwise provided in Section 12022.7, any person
who violates paragraph (3) of subdivision (a) shall receive a
two-year enhancement for each person other than an accomplice who
suffers serious bodily injury resulting from the vehicular collision
or accident in a violation of paragraph (3) of subdivision (a).
   (h)  This section shall not be construed to preclude the
applicability of any other provision of criminal law or equitable
remedy that applies or may apply to any act committed or alleged to
have been committed by a person.
  SEC. 144.  Section 594 of the Penal Code, as amended by Section 1.5
of Chapter 853 of the Statutes of 1998, is amended to read:
   594.  (a) Every person who maliciously commits any of the
following acts with respect to any real or personal property not his
or her own, in cases other than those specified by state law, is
guilty of vandalism:
   (1) Defaces with graffiti or other inscribed material.
   (2) Damages.
   (3) Destroys.
   Whenever a person violates this subdivision with respect to real
property, vehicles, signs, fixtures, or furnishings belonging to any
public entity, as defined by Section 811.2 of the Government Code, or
the federal government, it shall be a permissive inference that the
person neither owned the property nor had the permission of the owner
to deface, damage, or destroy the property.
   (b) (1) If the amount of defacement, damage, or destruction is
fifty thousand dollars ($50,000) or more, vandalism is punishable by
imprisonment in the state prison or in a county jail not exceeding
one year, or by a fine of not more than fifty thousand dollars
($50,000), or by both that fine and imprisonment.
   (2) If the amount of defacement, damage, or destruction is five
thousand dollars ($5,000) or more but less than fifty thousand
dollars ($50,000), vandalism is punishable by imprisonment in the
state prison, or in a county jail not exceeding one year, or by a
fine of not more than ten thousand dollars ($10,000), or by both that
fine and imprisonment.
   (3) If the amount of defacement, damage, or destruction is four
hundred dollars ($400) or more but less than five thousand dollars
($5,000), vandalism is punishable by imprisonment in a county jail
not exceeding one year, or by a fine of five thousand dollars
($5,000), or by both that fine and imprisonment.
   (4) (A) If the amount of defacement, damage, or destruction is
less than four hundred dollars ($400), vandalism is punishable by
imprisonment in a county jail for not more than six months, or by a
fine of not more than one thousand dollars ($1,000), or by both that
fine and imprisonment.
   (B) If the amount of defacement, damage, or destruction is less
than four hundred dollars ($400), and the defendant has been
previously convicted of vandalism or affixing graffiti or other
inscribed material under Section 594, 594.3, 594.4, 640.5, 640.6, or
640.7, vandalism is punishable by imprisonment in a county jail for
not more than one year, or by a fine of not more than five thousand
dollars ($5,000), or by both that fine and imprisonment.
   (c) (1) Upon conviction of any person under this section for acts
of vandalism consisting of defacing property with graffiti or other
inscribed materials, the court may, in addition to any punishment
imposed under subdivision (b), order the defendant to clean up,
repair, or replace the damaged property himself or herself, or, if
the jurisdiction has adopted a graffiti abatement program, order the
defendant, and his or her parents or guardians if the defendant is a
minor, to keep the damaged property or another specified property in
the community free of graffiti for up to one year.  Participation of
a parent or guardian is not required under this subdivision if the
court deems this participation to be detrimental to the defendant, or
if the parent or guardian is a single parent who must care for young
children.
   (2) Any city, county, or city and county may enact an ordinance
that provides for all of the following:
   (A) That upon conviction of any person pursuant to this section
for acts of vandalism, the court may, in addition to any punishment
imposed under subdivision (b), provided that the court determines
that the defendant has the ability to pay any law enforcement costs
not exceeding two hundred fifty dollars ($250), order the defendant
to pay all or part of the costs not to exceed two hundred fifty
dollars ($250) incurred by a law enforcement agency in identifying
and apprehending the defendant.  The law enforcement agency shall
provide evidence of, and bear the burden of establishing, the
reasonable costs that it incurred in identifying and apprehending the
defendant.
   (B) The law enforcement costs authorized to be paid pursuant to
this subdivision are in addition to any other costs incurred or
recovered by the law enforcement agency, and payment of these costs
does not in any way limit, preclude, or restrict any other right,
remedy, or action otherwise available to the law enforcement agency.

   (d) If a minor is personally unable to pay a fine levied for acts
prohibited by this section, the parent of that minor shall be liable
for payment of the fine.  A court may waive payment of the fine, or
any part thereof, by the parent upon a finding of good cause.
   (e) As used in this section, the term "graffiti or other inscribed
material" includes any unauthorized inscription, word, figure, mark,
or design that is written, marked, etched, scratched, drawn, or
painted on real or personal property.
   (f) As used in this section, "graffiti abatement program" means a
program adopted by a city, county, or city and county by resolution
or ordinance that provides for the administration and financing of
graffiti removal, community education on the prevention of graffiti,
and enforcement of graffiti laws.
   (g) The court may order any person ordered to perform community
service or graffiti removal pursuant to paragraph (1) of subdivision
(c) to undergo counseling.
   (h) No amount paid by a defendant in satisfaction of a criminal
matter shall be applied in satisfaction of the law enforcement costs
that may be imposed pursuant to this section until all outstanding
base fines, state and local penalty assessments, restitution orders,
and restitution fines have been paid.
   (i) This section shall remain in effect until January 1, 2002, and
as of that date is repealed, unless a later enacted statute that is
enacted before January 1, 2002, deletes or extends that date.
  SEC. 145.  Section 594 of the Penal Code, as added by Section 1.6
of Chapter 853 of the Statutes of 1998, is amended to read:
   594.  (a) Every person who maliciously commits any of the
following acts with respect to any real or personal property not his
or her own, in cases other than those specified by state law, is
guilty of vandalism:
   (1) Defaces with graffiti or other inscribed material.
   (2) Damages.
   (3) Destroys.
   Whenever a person violates this subdivision with respect to real
property, vehicles, signs, fixtures, or furnishings belonging to any
public entity, as defined by Section 811.2 of the Government Code, or
the federal government, it shall be a permissive inference that the
person neither owned the property nor had the permission of the owner
to deface, damage, or destroy the property.
   (b) (1) If the amount of defacement, damage, or destruction is
fifty thousand dollars ($50,000) or more, vandalism is punishable by
imprisonment in the state prison or in a county jail not exceeding
one year, or by a fine of not more than fifty thousand dollars
($50,000), or by both that fine and imprisonment.
   (2) If the amount of defacement, damage, or destruction is five
thousand dollars ($5,000) or more but less than fifty thousand
dollars ($50,000), vandalism is punishable by imprisonment in the
state prison, or in a county jail not exceeding one year, or by a
fine of not more than ten thousand dollars ($10,000), or by both that
fine and imprisonment.
   (3) If the amount of defacement, damage, or destruction is four
hundred dollars ($400) or more but less than five thousand dollars
($5,000), vandalism is punishable by imprisonment in a county jail
not exceeding one year, or by a fine of five thousand dollars
($5,000), or by both that fine and imprisonment.
   (4) (A) If the amount of defacement, damage, or destruction is
less than four hundred dollars ($400), vandalism is punishable by
imprisonment in a county jail for not more than six months, or by a
fine of not more than one thousand dollars ($1,000), or by both that
fine and imprisonment.
   (B) If the amount of defacement, damage, or destruction is less
than four hundred dollars ($400), and the defendant has been
previously convicted of vandalism or affixing graffiti or other
inscribed material under Section 594, 594.3, 594.4, 640.5, 640.6, or
640.7, vandalism is punishable by imprisonment in a county jail for
not more than one year, or by a fine of not more than five thousand
dollars ($5,000), or by both that fine and imprisonment.
   (c) Upon conviction of any person under this section for acts of
vandalism consisting of defacing property with graffiti or other
inscribed materials, the court may, in addition to any punishment
imposed under subdivision (b), order the defendant to clean up,
repair, or replace the damaged property himself or herself, or, if
the jurisdiction has adopted a graffiti abatement program, order the
defendant, and his or her parents or guardians if the defendant is a
minor, to keep the damaged property or another specified property in
the community free of graffiti for up to one year.  Participation of
a parent or guardian is not required under this subdivision if the
court deems this participation to be detrimental to the defendant, or
if the parent or guardian is a single parent who must care for young
children.
   (d) If a minor is personally unable to pay a fine levied for acts
prohibited by this section, the parent of that minor shall be liable
for payment of the fine.  A court may waive payment of the fine, or
any part thereof, by the parent upon a finding of good cause.
   (e) As used in this section, the term "graffiti or other inscribed
material" includes any unauthorized inscription, word, figure, mark,
or design that is written, marked, etched, scratched, drawn, or
painted on real or personal property.
   (f) As used in this section, "graffiti abatement program" means a
program adopted by a city, county, or city and county by resolution
or ordinance that provides for the administration and financing of
graffiti removal, community education on the prevention of graffiti,
and enforcement of graffiti laws.
   (g) The court may order any person ordered to perform community
service or graffiti removal pursuant to paragraph (1) of subdivision
(c) to undergo counseling.
   (h) This section shall become operative on January 1, 2002.
  SEC. 146.  Section 626.9 of the Penal Code is amended to read:
   626.9.  (a) This section shall be known, and may be cited, as the
Gun-Free School Zone Act of 1995.
   (b) Any person who possesses a firearm in a place that the person
knows, or reasonably should know, is a school zone, as defined in
paragraph (1) of subdivision (e), unless it is with the written
permission of the school district superintendent, his or her
designee, or equivalent school authority, shall be punished as
specified in subdivision (f).
   (c) Subdivision (b)  does not apply to the possession of a firearm
under any of the following circumstances:
   (1) Within a place of residence or place of business or on private
property, if the place of residence, place of business, or private
property is not part of the school grounds and the possession of the
firearm is otherwise lawful.
   (2) When the firearm is an unloaded pistol, revolver, or other
firearm capable of being concealed on the person and is in a locked
container or within the locked trunk of a motor vehicle.
   This section  does not prohibit or limit the otherwise lawful
transportation of any other firearm, other than a pistol, revolver,
or other firearm capable of being concealed on the person, in
accordance with state law.
   (3) When the person possessing the firearm reasonably believes
that he or she is in grave danger because of circumstances forming
the basis of a current restraining order issued by a court against
another person or persons who has or have been found to pose a threat
to his or her life or safety.  This subdivision may not apply when
the circumstances involve a mutual restraining order issued pursuant
to Division 10 (commencing with Section 6200) of the Family Code
absent a factual finding of a specific threat to the person's life or
safety.  Upon a trial for violating subdivision (b), the trier of
                                             a fact shall determine
whether the defendant was acting out of a reasonable belief that he
or she was in grave danger.
   (4) When the person is exempt from the prohibition against
carrying a concealed firearm pursuant to subdivision (b), (d), (e),
or (h) of Section 12027.
   (d) Except as provided in subdivision (b), it shall be unlawful
for any person, with reckless disregard for the safety of another, to
discharge, or attempt to discharge, a firearm in a school zone, as
defined in paragraph (1) of subdivision (e).
   The prohibition contained in this subdivision does not apply to
the discharge of a firearm to the extent that the conditions of
paragraph (1) of subdivision (c) are satisfied.
   (e) As used in this section, the following definitions shall
apply:
   (1) "School zone" means an area in, or on the grounds of, a public
or private school providing instruction in kindergarten or grades 1
to 12, inclusive,  or within a distance of 1,000 feet from the
grounds of the public or private school.
   (2) "Firearm" has the same meaning as that term is given in
Section 12001.
   (3) "Locked container" has the same meaning as that term is given
in subdivision (c) of Section 12026.1.
   (4) "Concealed firearm" has the same meaning as that term is given
in Sections 12025 and 12026.1.
   (f) (1) Any person who violates subdivision (b) by possessing a
firearm in, or on the grounds of, a public or private school
providing instruction in kindergarten or grades 1 to 12, inclusive,
shall be punished by imprisonment in the state prison for two, three,
or five years.
   (2) Any person who violates subdivision (b) by possessing a
firearm within a distance of 1,000 feet from the grounds of a public
or private school providing instruction in kindergarten or grades 1
to 12, inclusive, shall be punished as follows:
   (A) By imprisonment in the state prison for two, three, or five
years, if any of the following circumstances apply:
   (i) If the person previously has been convicted of any felony, or
of any crime made punishable by Chapter 1 (commencing with Section
12000) of Title 2 of Part 4.
   (ii) If the person is within a class of persons prohibited from
possessing or acquiring a firearm pursuant to Section 12021 or
12021.1 of this code or Section 8100 or 8103 of the Welfare and
Institutions Code.
   (iii) If the firearm is any pistol, revolver, or other firearm
capable of being concealed upon the person and the offense is
punished as a felony pursuant to Section 12025.
   (B) By imprisonment in a county jail for not more than one year or
by imprisonment in the state prison for two, three, or five years,
in all cases other than those specified in subparagraph (A).
   (3) Any person who violates subdivision (d) shall be punished by
imprisonment in the state prison for three, five, or seven years.
   (g) (1) Every person convicted under this section for a
misdemeanor violation of subdivision (b) who has been convicted
previously of a misdemeanor offense enumerated in Section 12001.6
shall be punished by imprisonment in a county jail for not less than
three months, or if probation is granted or if the execution or
imposition of sentence is suspended, it shall be a condition thereof
that he or she be imprisoned in a county jail for not less than three
months.
   (2) Every person convicted under this section of a felony
violation of subdivision (b) or (d) who has been convicted previously
of a misdemeanor offense enumerated in Section 12001.6, if probation
is granted or if the execution of sentence is suspended, it shall be
a condition thereof that he or she be imprisoned in a county jail
for not less than three months.
   (3) Every person convicted under this section for a felony
violation of subdivision (b) or (d) who has been convicted previously
of any felony, or of any crime made punishable by Chapter 1
(commencing with Section 12000) of Title 2 of Part 4, if probation is
granted or if the execution or imposition of sentence is suspended,
it shall be a condition thereof that he or she be imprisoned in a
county jail for not less than three months.
   (4) The court shall apply the three-month minimum sentence
specified in this subdivision, except in unusual cases where the
interests of justice would best be served by granting probation or
suspending the execution or imposition of sentence without the
minimum imprisonment required in this subdivision or by granting
probation or suspending the execution or imposition of sentence with
conditions other than those set forth in this subdivision, in which
case the court shall specify on the record and shall enter on the
minutes the circumstances indicating that the interests of justice
would best be served by this disposition.
   (h) Notwithstanding Section 12026, any person who brings or
possesses a loaded firearm upon the grounds of a campus of, or
buildings owned or operated for student housing, teaching, research,
or administration by, a public or private university or college, that
are contiguous or are clearly marked university property, unless it
is with the written permission of the university or college
president, his or her designee, or equivalent university or college
authority, shall be punished by imprisonment in the state prison for
two, three, or four years.  Notwithstanding subdivision (k), a
university or college shall post a prominent notice at primary
entrances on noncontiguous property stating that firearms are
prohibited on that property pursuant to this subdivision.
   (i) Notwithstanding Section 12026, any person who brings or
possesses a firearm upon the grounds of a campus of, or buildings
owned or operated for student housing, teaching, research, or
administration by, a public or private university or college, that
are contiguous or are clearly marked university property, unless it
is with the written permission of the university or college
president, his or her designee, or equivalent university or college
authority, shall be punished by imprisonment in the state prison for
one, two, or three years.  Notwithstanding subdivision (k), a
university or college shall post a prominent notice at primary
entrances on noncontiguous property stating that firearms are
prohibited on that property pursuant to this subdivision.
   (j) For purposes of this section, a firearm shall be deemed to be
loaded when there is an unexpended cartridge or shell, consisting of
a case that holds a charge of powder and a bullet or shot, in, or
attached in any manner to, the firearm, including, but not limited
to, in the firing chamber, magazine, or clip thereof attached to the
firearm.  A muzzle-loader firearm shall be deemed to be loaded when
it is capped or primed and has a powder charge and ball or shot in
the barrel or cylinder.
   (k) This section  does not require that notice be posted regarding
the proscribed conduct.
   (l) This section does not apply to a duly appointed peace officer
as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of
Part 2, a full-time paid peace officer of another state or the
federal government who is carrying out official duties while in
California, any person summoned by any of these officers to assist in
making arrests or preserving the peace while he or she is actually
engaged in assisting the officer, a member of the military forces of
this state or of the United States who is engaged in the performance
of his or her duties, a person holding a valid license to carry the
firearm pursuant to Article 3 (commencing with Section 12050) of
Chapter 1 of Title 2 of Part 4, or an armored vehicle guard, engaged
in the performance of his or her duties, as defined in subdivision
(e) of Section 7521 of the Business and Professions Code.
   (m) This section  does not apply to a security guard authorized to
carry a loaded firearm pursuant to Section 12031.
   (n) This section  does not apply to an existing shooting range at
a public or private school or university or college campus.
   (o) This section  does not apply to an honorably retired peace
officer authorized to carry a concealed or loaded firearm pursuant to
subdivision (a) or (i) of Section 12027 or paragraph (1) or (8) of
subdivision (b) of Section 12031.
  SEC. 147.  Section 653m of the Penal Code is amended to read:
   653m.  (a) Every person who, with intent to annoy, telephones or
makes contact by means of an electronic communication device with
another and addresses to or about the other person any obscene
language or addresses to the other person any threat to inflict
injury to the person or property of the person addressed or any
member of his or her family, is guilty of a misdemeanor.  Nothing in
this subdivision shall apply to telephone calls or electronic
contacts made in good faith.
   (b) Every person who makes repeated telephone calls or makes
repeated contact by means of an electronic communication device with
intent to annoy another person at his or her residence, is, whether
or not conversation ensues from making the telephone call or
electronic contact, guilty of a misdemeanor.  Nothing in this
subdivision shall apply to telephone calls or electronic contacts
made in good faith.
   (c) Every person who makes repeated telephone calls or makes
repeated contact by means of an electronic communication device with
the intent to annoy another person at his or her place of work is
guilty of a misdemeanor punishable by a fine of not more than one
thousand dollars ($1,000), or by imprisonment in a county jail for
not more than one year, or by both that fine and imprisonment.
Nothing in this subdivision shall apply to telephone calls or
electronic contacts made in good faith.  This subdivision applies
only if one or both of the following circumstances exist:
   (1) There is a temporary restraining order, an injunction, or any
other court order, or any combination of these court orders, in
effect prohibiting the behavior described in this section.
   (2) The person makes repeated telephone calls or makes repeated
contact by means of an electronic communication device with the
intent to annoy another person at his or her place of work, totaling
more than 10 times in a 24-hour period, whether or not conversation
ensues from making the telephone call or electronic contact, and the
repeated telephone calls or electronic contacts are made to the
workplace of an adult or fully emancipated minor who is a spouse,
former spouse, cohabitant, former cohabitant, or person with whom the
person has a child or has had a dating or engagement relationship or
is having a dating or engagement relationship.
   (d) Any offense committed by use of a telephone may be deemed to
have been committed where the telephone call or calls were made or
received.  Any offense committed by use of an electronic
communication device or medium, including the Internet, may be deemed
to have been committed when the electronic communication or
communications were originally sent or first viewed by the recipient.

   (e) Subdivision (a), (b), or (c) is violated when the person
acting with intent to annoy makes a telephone call requesting a
return call and performs the acts prohibited under subdivision (a),
(b), or (c) upon receiving the return call.
   (f) If probation is granted, or the execution or imposition of
sentence is suspended, for any person convicted under this section,
the court may order as a condition of probation that the person
participate in counseling.
   (g) For purposes of this section, the term "electronic
communication device" includes, but is not limited to, telephones,
cellular phones, computers, video recorders, fax machines, or pagers.
  "Electronic communication" has the same meaning as the term defined
in Subsection 12 of Section 2510 of Title 18 of the United States
Code.
  SEC. 148.  Section 790 of the Penal Code is amended to read:
   790.  (a) The jurisdiction of a criminal action for murder or
manslaughter is in the county where the fatal injury was inflicted or
in the county in which the injured party died or in the county in
which his or her body was found.  However, if the defendant is
indicted in the county in which the fatal injury was inflicted, at
any time before his or her trial in another county, the sheriff of
the other county shall, if the defendant is in custody, deliver the
defendant upon demand to the sheriff of the county in which the fatal
injury was inflicted.  When the fatal injury was inflicted and the
injured person died or his or her body was found within five hundred
yards of the boundary of two or more counties, jurisdiction is in
either county.
   (b) If a defendant is charged with a special circumstance pursuant
to paragraph (3) of subdivision (a) of Section 190.2, the
jurisdiction for any charged murder, and for any crimes properly
joinable with that murder, shall be in any county that has
jurisdiction pursuant to subdivision (a) for one or more of the
murders charged in a single complaint or indictment as long as the
charged murders are "connected together in their commission," as that
phrase is used in Section 954, and subject to a hearing in the
jurisdiction where the prosecution is attempting to consolidate the
charged murders.  If the charged murders are not joined or
consolidated, the murder that was charged outside of the county that
has jurisdiction pursuant to subdivision (a) shall be returned to
that county.
  SEC. 149.  Section 831.5 of the Penal Code, as amended by Section 8
of Chapter 606 of the Statutes of 1998, is amended to read:
   831.5.  (a) As used in this section, a custodial officer is a
public officer, not a peace officer, employed by a law enforcement
agency of San Diego County, Fresno County, Kern County, Stanislaus
County, Riverside County, or a county having a population of 425,000
or less who has the authority and responsibility for maintaining
custody of prisoners and performs tasks related to the operation of a
local detention facility used for the detention of persons usually
pending arraignment or upon court order either for their own
safekeeping or for the specific purpose of serving a sentence
therein.  Custodial officers of a county shall be employees of, and
under the authority of, the sheriff, except in counties in which the
sheriff, as of July 1, 1993, is not in charge of and the sole and
exclusive authority to keep the county jail and the prisoners in it.
A custodial officer includes a person designated as a correctional
officer, jailer, or other similar title.  The duties of a custodial
officer may include the serving of warrants, court orders, writs, and
subpoenas in the detention facility or under circumstances arising
directly out of maintaining custody of prisoners and related tasks.
In counties having a population of 100,000 or less, a custodial
officer may be assigned by the sheriff as a court bailiff on an
interim basis, and, when under the direction of the sheriff, a
custodial officer assigned as a court bailiff may carry or possess
firearms.
   (b) Notwithstanding any other provision of law, during a state of
emergency as defined in Section 8558 of the Government Code, a
custodial officer may be assigned limited law enforcement
responsibilities under the supervision of a peace officer.  While on
this assignment, the custodial officer may exercise the powers of
arrest pursuant to Section 836.5.
   (c) A custodial officer has no right to carry or possess firearms
in the performance of his or her prescribed duties, except, under the
direction of the sheriff or chief of police, while assigned as a
court bailiff or engaged in transporting prisoners, guarding
hospitalized prisoners, or suppressing jail riots, lynchings,
escapes, or rescues in or about a detention facility falling under
the care and custody of the sheriff or chief of police.
   (d) Each person described in this section as a custodial officer
shall, within 90 days following the date of the initial assignment to
that position, satisfactorily complete the training course specified
in Section 832.  In addition, each person designated as a custodial
officer shall, within  one year following the date of the initial
assignment as a custodial officer, have satisfactorily met the
minimum selection and training standards prescribed by the Board of
Corrections pursuant to Section 6035.  Persons designated as
custodial officers, before the expiration of the 90-day and one-year
periods described in this subdivision, who have not yet completed the
required training, shall not carry or possess firearms in the
performance of their prescribed duties, but may perform the duties of
a custodial officer only while under the direct supervision of a
peace officer, as described in Section 830.1, who has completed the
training prescribed by the Commission on Peace Officer Standards and
Training, or a custodial officer who has completed the training
required in this section.
   (e) At any time that 20 or more custodial officers are on duty,
there shall be at least one peace officer, as described in Section
830.1, on duty at the same time to supervise the performance of the
custodial officers.
   (f) This section shall not be construed to confer any authority
upon any custodial officer except while on duty.
   (g) A custodial officer may use reasonable force in establishing
and maintaining custody of persons delivered to him or her by a law
enforcement officer, may make arrests for misdemeanors and felonies
within the local detention facility pursuant to a duly issued
warrant, may make warrantless arrests pursuant to Section 836.5 only
during the duration of his or her job, may release without further
criminal process persons arrested for intoxication, and may release
misdemeanants on citation to appear in lieu of or after booking.
  (h) This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2003, deletes or extends that date.

  SEC. 150.  Section 831.5 of the Penal Code, as added by Section 8.5
of Chapter 606 of the Statutes of 1998, is amended to read:
   831.5.  (a) As used in this section, a custodial officer is a
public officer, not a peace officer, employed by a law enforcement
agency of San Diego County, Fresno County, Kern County, Stanislaus
County, Riverside County, or a county having a population of 425,000
or less who has the authority and responsibility for maintaining
custody of prisoners and performs tasks related to the operation of a
local detention facility used for the detention of persons usually
pending arraignment or upon court order either for their own
safekeeping or for the specific purpose of serving a sentence
therein.  Custodial officers of a county shall be employees of, and
under the authority of, the sheriff, except in counties in which the
sheriff, as of July 1, 1993, is not in charge of and the sole and
exclusive authority to keep the county jail and the prisoners in it.
A custodial officer includes a person designated as a correctional
officer, jailer, or other similar title.  The duties of a custodial
officer may include the serving of warrants, court orders, writs, and
subpoenas in the detention facility or under circumstances arising
directly out of maintaining custody of prisoners and related tasks.
   (b) A custodial officer has no right to carry or possess firearms
in the performance of his or her prescribed duties, except, under the
direction of the sheriff or chief of police, while engaged in
transporting prisoners; guarding hospitalized prisoners; or
suppressing jail riots, lynchings, escapes, or rescues in or about a
detention facility falling under the care and custody of the sheriff
or chief of police.
   (c) Each person described in this section as a custodial officer
shall, within 90 days following the date of the initial assignment to
that position, satisfactorily complete the training course specified
in Section 832.  In addition, each person designated as a custodial
officer shall, within  one year following the date of the initial
assignment as a custodial officer, have satisfactorily met the
minimum selection and training standards prescribed by the Board of
Corrections pursuant to Section 6035.  Persons designated as
custodial officers, before the expiration of the 90-day and one-year
periods described in this subdivision, who have not yet completed the
required training, shall not carry or possess firearms in the
performance of their prescribed duties, but may perform the duties of
a custodial officer only while under the direct supervision of a
peace officer, as described in Section 830.1, who has completed the
training prescribed by the Commission on Peace Officer Standards and
Training, or a custodial officer who has completed the training
required in this section.
   (d) At any time that 20 or more custodial officers are on duty,
there shall be at least one peace officer, as described in Section
830.1, on duty at the same time to supervise the performance of the
custodial officers.
   (e) This section shall not be construed to confer any authority
upon any custodial officer except while on duty.
   (f) A custodial officer may use reasonable force in establishing
and maintaining custody of persons delivered to him or her by a law
enforcement officer, may make arrests for misdemeanors and felonies
within the local detention facility pursuant to a duly issued
warrant, may make warrantless arrests pursuant to Section 836.5 only
during the duration of his or her job, may release without further
criminal process persons arrested for intoxication, and may release
misdemeanants on citation to appear in lieu of or after booking.
   (g) This section shall become operative on January 1, 2003.
  SEC. 151.  Section 1203.097 of the Penal Code is amended to read:
   1203.097.  (a) If a person is granted probation for a crime in
which the victim is a person defined in Section 6211 of the Family
Code, the terms of probation shall include all of the following:
   (1) A minimum period of probation of 36 months, which may include
a period of summary probation as appropriate.
   (2) A criminal court protective order protecting the victim from
further acts of violence, threats, stalking, sexual abuse, and
harassment, and, if appropriate, containing residence exclusion or
stay-away conditions.
   (3) Notice to the victim of the disposition of the case.
   (4) Booking the defendant within one week of sentencing if the
defendant has not already been booked.
   (5) A minimum payment by the defendant of two hundred dollars
($200) to be disbursed as specified in this paragraph.  If, after a
hearing in court on the record, the court finds that the defendant
does not have the ability to pay, the court may reduce or waive this
fee.
   One-third of the moneys deposited with the county treasurer
pursuant to this section shall be retained by counties and deposited
in the domestic violence programs special fund created pursuant to
Section 18305 of the Welfare and Institutions Code, to be expended
for the purposes of Chapter 5 (commencing with Section 18290) of Part
6 of Division 9 of the Welfare and Institutions Code.  The remainder
shall be transferred, once a month, to the Controller for deposit in
  equal amounts in the Domestic Violence Restraining Order
Reimbursement Fund and in the Domestic Violence Training and
Education Fund, which are hereby created, in an amount equal to
two-thirds of funds collected during the preceding month.  Moneys
deposited into these funds to this section shall be available upon
appropriation by the Legislature and shall be distributed each fiscal
year as follows:
   (A) Funds from the Domestic Violence Restraining Order
Reimbursement Fund shall be distributed to local law enforcement or
other criminal justice agencies for state-mandated local costs
resulting from the notification requirements set forth in subdivision
(a) of Section 6385 of the Family Code, based on the annual
notification from the Department of Justice of the number of
restraining orders issued and registered in the state domestic
violence restraining order registry maintained by the Department of
Justice, for the development and maintenance of the domestic violence
restraining order data bank system.
   (B) Funds from the Domestic Violence Training and Education Fund
shall support a statewide training and education program to increase
public awareness of domestic violence and to improve the scope and
quality of services provided to the victims of domestic violence.
Grants to support this program shall be awarded on a competitive
basis and be administered by the State Department of Health Services,
in consultation with the statewide domestic violence coalition,
which is eligible to receive funding under this section.
   (6) Successful completion of a batterer's program, as defined in
subdivision (c), or if none is available, another appropriate
counseling program designated by the court, for a period not less
than one year with periodic progress reports by the program to the
court every three months or less and weekly sessions of a minimum of
two hours class time duration.
   (7) (A) (i) The court shall order the defendant to comply with all
probation requirements, including the requirements to attend
counseling, keep all program appointments, and pay program fees based
upon the ability to pay.
   (ii) The terms of probation for offenders shall not be lifted
until all reasonable fees due to the counseling program have been
paid in full, but in no case shall probation be extended beyond the
term provided in subdivision (a) of Section 1203.1.  If the court
finds that the defendant does not have the ability to pay the fees
based on the defendant's changed circumstances, the court may reduce
or waive the fees.
   (B) Upon request by the batterer's program, the court shall
provide the defendant's arrest report, prior incidents of violence,
and treatment history to the program.
   (8) The court also shall order the defendant to perform a
specified amount of appropriate community service, as designated by
the court.  The defendant shall present the court with proof of
completion of community service and the court shall determine if the
community service has been satisfactorily completed.  If sufficient
staff and resources are available, the community service shall be
performed under the jurisdiction of the local agency overseeing a
community service program.
   (9) If the program finds that the defendant is unsuitable, the
program shall immediately contact the probation department or the
court.  The probation department or court shall either recalendar the
case for hearing or refer the defendant to an appropriate
alternative batterer's program.
                                                               (10)
(A) Upon recommendation of the program, a court shall require a
defendant to participate in additional sessions throughout the
probationary period, unless it finds that it is not in the interests
of justice to do so, states its reasons on the record, and enters
them into the minutes.  In deciding whether the defendant would
benefit from more sessions, the court shall consider whether any of
the following conditions exist:
   (i) The defendant has been violence free for a minimum of six
months.
   (ii) The defendant has cooperated and participated in the batterer'
s program.
   (iii) The defendant demonstrates an understanding of and practices
positive conflict resolution skills.
   (iv) The defendant blames, degrades, or has committed acts that
dehumanize the victim or puts at risk the victim's safety, including,
but not limited to, molesting, stalking, striking, attacking,
threatening, sexually assaulting, or battering the victim.
   (v) The defendant demonstrates an understanding that the use of
coercion or violent behavior to maintain dominance is unacceptable in
an intimate relationship.
   (vi) The defendant has made threats to harm anyone in any manner.

   (vii) The defendant has complied with applicable requirements
under paragraph (6) of subdivision (c) or subparagraph (C) to receive
alcohol counseling, drug counseling, or both.
   (viii) The defendant demonstrates acceptance of responsibility for
the abusive behavior perpetrated against the victim.
   (B) The program shall immediately report any violation of the
terms of the protective order, including any new acts of violence or
failure to comply with the program requirements, to the court, the
prosecutor, and, if formal probation has been ordered, to the
probation department.  The probationer shall file proof of enrollment
in a batterer's program with the court within 30 days of conviction.

   (C) Concurrent with other requirements under this section, in
addition to, and not in lieu of, the batterer's program, and unless
prohibited by the referring court, the probation department or the
court may make provisions for a defendant to use his or her resources
to enroll in a chemical dependency program or to enter voluntarily a
licensed chemical dependency recovery hospital or residential
treatment program that has a valid license issued by the state to
provide alcohol or drug services to receive program participation
credit, as determined by the court.  The probation department shall
document evidence of this hospital or residential treatment
participation in the defendant's program file.
   (11) The conditions of probation may include, in lieu of a fine,
but not in lieu of the fund payment required under paragraph (5), one
or more of the following requirements:
   (A) That the defendant make payments to a battered women's
shelter, up to a maximum of five thousand dollars ($5,000).
   (B) That the defendant reimburse the victim for reasonable
expenses that the court finds are the direct result of the defendant'
s offense.
   For any order to pay a fine, to make payments to a battered women'
s shelter, or to pay restitution as a condition of probation under
this subdivision, the court shall make a determination of the
defendant's ability to pay.  Determination of a defendant's ability
to pay may include his or her future earning capacity.  A defendant
shall bear the burden of demonstrating lack of his or her ability to
pay.  Express findings by the court as to the factors bearing on the
amount of the fine shall not be required.  In no event shall any
order to make payments to a battered women's shelter be made if it
would impair the ability of the defendant to pay direct restitution
to the victim or court-ordered child support.  When the injury to a
married person is caused in whole or in part by the criminal acts of
his or her spouse in violation of this section, the community
property shall not be used to discharge the liability of the
offending spouse for restitution to the injured spouse, as required
by Section 1203.04, as operative on or before August 2, 1995, or
Section 1202.4, or to a shelter for costs with regard to the injured
spouse, until all separate property of the offending spouse is
exhausted.
   (12) If it appears to the prosecuting attorney, the court, or the
probation department that the defendant is performing
unsatisfactorily in the assigned program, is not benefiting from
counseling, or has engaged in criminal conduct, upon request of the
probation officer, the prosecuting attorney, or on its own motion,
the court, as a priority calendar item, shall hold a hearing to
determine whether further sentencing should proceed.  The court may
consider factors, including, but not limited to, any violence by the
defendant against the former or a new victim while on probation and
noncompliance with any other specific condition of probation.  If the
court finds that the defendant is not performing satisfactorily in
the assigned program, is not benefiting from the program, has not
complied with a condition of probation, or has engaged in criminal
conduct, the court shall terminate the defendant's participation in
the program and shall proceed with further sentencing.
   (b) If a person is granted formal probation for a crime in which
the victim is a person defined in Section 6211 of the Family Code, in
addition to the terms specified in subdivision (a), all of the
following shall apply:
   (1) The probation department shall make an investigation and take
into consideration the defendant's age, medical history, employment
and service records, educational background, community and family
ties, prior incidents of violence, police report, treatment history,
if any, demonstrable motivation, and other mitigating factors in
determining which batterer's program would be appropriate for the
defendant.  This information shall be provided to the batterer's
program if it is requested.  The probation department shall also
determine which community programs the defendant would benefit from
and which of those programs would accept the defendant.  The
probation department shall report its findings and recommendations to
the court.
   (2) The court shall advise the defendant that the failure to
report to the probation department for the initial investigation, as
directed by the court, or the failure to enroll in a specified
program, as directed by the court or the probation department, shall
result in possible further incarceration.  The court, in the
interests of justice, may relieve the defendant from the prohibition
set forth in this subdivision based upon the defendant's mistake or
excusable neglect.  Application for this relief shall be filed within
20 court days of the missed deadline.  This time limitation may not
be extended.  A copy of any application for relief shall be served on
the office of the prosecuting attorney.
   (3) After the court orders the defendant to a batterer's program,
the probation department shall conduct an initial assessment of the
defendant, including, but not limited to, all of the following:
   (A) Social, economic, and family background.
   (B) Education.
   (C) Vocational achievements.
   (D) Criminal history.
   (E) Medical history.
   (F) Substance abuse history.
   (G) Consultation with the probation officer.
   (H) Verbal consultation with the victim, only if the victim
desires to participate.
   (I) Assessment of the future probability of the defendant
committing murder.
   (4) The probation department shall attempt to notify the victim
regarding the requirements for the defendant's participation in the
batterer's program, as well as regarding available victim resources.
The victim also shall be informed that attendance in any program
does not guarantee that an abuser will not be violent.
   (c) The court or the probation department shall refer defendants
only to batterer's programs that follow standards outlined in
paragraph (1), which may include, but are not limited to, lectures,
classes, group discussions, and counseling.  The probation department
shall design and implement an approval and renewal process for
batterer's programs and shall solicit input from criminal justice
agencies and domestic violence victim advocacy programs.
   (1) The goal of a batterer's program under this section shall be
to stop domestic violence.  A batterer's program shall consist of the
following components:
   (A) Strategies to hold the defendant accountable for the violence
in a relationship, including, but not limited to, providing the
defendant with a written statement that the defendant shall be held
accountable for acts or threats of domestic violence.
   (B) A requirement that the defendant participate in ongoing
same-gender group sessions.
   (C) An initial intake that provides written definitions to the
defendant of physical, emotional, sexual, economic, and verbal abuse,
and the techniques for stopping these types of abuse.
   (D) Procedures to inform the victim regarding the requirements for
the defendant's participation in the intervention program as well as
regarding available victim resources.  The victim also shall be
informed that attendance in any program does not guarantee that an
abuser will not be violent.
   (E) A requirement that the defendant attend group sessions free of
chemical influence.
   (F) Educational programming that examines, at a minimum, gender
roles, socialization, the nature of violence, the dynamics of power
and control, and the effects of abuse on children and others.
   (G) A requirement that excludes any couple counseling or family
counseling, or both.
   (H) Procedures that give the program the right to assess whether
or not the defendant would benefit from the program and to refuse to
enroll the defendant if it is determined that the defendant would not
benefit from the program, so long as the refusal is not because of
the defendant's inability to pay.  If possible, the program shall
suggest an appropriate alternative program.
   (I) Program staff who, to the extent possible, have specific
knowledge regarding, but not limited to, spousal abuse, child abuse,
sexual abuse, substance abuse, the dynamics of violence and abuse,
the law, and procedures of the legal system.
   (J) Program staff who are encouraged to utilize the expertise,
training, and assistance of local domestic violence centers.
   (K) A requirement that the defendant enter into a written
agreement with the program, which shall include an outline of the
contents of the program, the attendance requirements, the requirement
to attend group sessions free of chemical influence, and a statement
that the defendant may be removed from the program if it is
determined that the defendant is not benefiting from the program or
is disruptive to the program.
   (L) A requirement that the defendant sign a confidentiality
statement prohibiting disclosure of any information obtained through
participating in the program or during group sessions regarding other
participants in the program.
   (M) Program content that provides cultural and ethnic sensitivity.

   (N) A requirement of a written referral from the court or
probation department prior to permitting the defendant to enroll in
the program.  The written referral shall state the number of minimum
sessions required by the court.
   (O) Procedures for submitting to the probation department all of
the following uniform written responses:
   (i) Proof of enrollment, to be submitted to the court and the
probation department and to include the fee determined to be charged
to the defendant, based upon the ability to pay, for each session.
   (ii) Periodic progress reports that include attendance, fee
payment history, and program compliance.
   (iii) Final evaluation that includes the program's evaluation of
the defendant's progress, using the criteria set forth in paragraph
(4) of subdivision (a) and recommendation for either successful or
unsuccessful termination or continuation in the program.
   (P) A sliding fee schedule based on the defendant's ability to
pay.  The batterer's program shall develop and utilize a sliding fee
scale that recognizes both the defendant's ability to pay and the
necessity of programs to meet overhead expenses.  An indigent
defendant may negotiate a deferred payment schedule, but shall pay a
nominal fee, if the defendant has the ability to pay the nominal fee.
  Upon a hearing and a finding by the court that the defendant does
not have the financial ability to pay the nominal fee, the court
shall waive this fee.  The payment of the fee shall be made a
condition of probation if the court determines the defendant has the
present ability to pay the fee.  The fee shall be paid during the
term of probation unless the program sets other conditions.  The
acceptance policies shall be in accordance with the scaled fee
system.
   (2) The court shall refer persons only to batterer's programs that
have been approved by the probation department pursuant to paragraph
(5).  The probation department shall do  both of the following:
   (A) Provide for the issuance of a provisional approval, provided
that the applicant is in substantial compliance with applicable laws
and regulations and an urgent need for approval exists.  A
provisional approval shall be considered an authorization to provide
services and shall not be considered a vested right.
   (B) If the probation department determines that a program is not
in compliance with standards set by the department, the department
shall provide written notice of the noncompliant areas to the
program.  The program shall submit a written plan of corrections
within 14 days from the date of the written notice on noncompliance.
A plan of correction shall include, but not be limited to, a
description of each corrective action and timeframe for
implementation.  The department shall review and approve all or any
part of the plan of correction and notify the program of approval or
disapproval in writing.  If the program fails to submit a plan of
correction or fails to implement the approved plan of correction, the
department shall consider whether to revoke or suspend approval and,
upon revoking or suspending approval, shall have the option to cease
referrals of defendants under this section.
   (3) No program, regardless of its source of funding, shall be
approved unless it meets all of the following standards:
   (A) The establishment of guidelines and criteria for education
services, including standards of services that may include lectures,
classes, and group discussions.
   (B) Supervision of the defendant for the purpose of evaluating the
person's progress in the program.
   (C) Adequate reporting requirements to ensure that all persons
who, after being ordered to attend and complete a program, may be
identified for either failure to enroll in, or failure to
successfully complete, the program or for the successful completion
of the program as ordered.  The program shall notify the court and
the probation department in writing within the period of time and in
the manner specified by the court of any person who fails to complete
the program.  Notification shall be given if the program determines
that the defendant is performing unsatisfactorily or if the defendant
is not benefiting from the education, treatment, or counseling.
   (D) No victim shall be compelled to participate in a program or
counseling, and no program may condition a defendant's enrollment on
participation by the victim.
   (4) In making referrals of indigent defendants to approved
batterer's programs, the probation department shall apportion these
referrals evenly among the approved programs.
   (5) The probation department shall have the sole authority to
approve a batterer's program for probation.  The program shall be
required to obtain only one approval but shall renew that approval
annually.
   (A) The procedure for the approval of a new or existing program
shall include all of the following:
   (i) The completion of a written application containing necessary
and pertinent information describing the applicant program.
   (ii) The demonstration by the program that it possesses adequate
administrative and operational capability to operate a batterer's
treatment program.  The program shall provide documentation to prove
that the program has conducted batterer's programs for at least one
year prior to application.  This requirement may be waived under
subparagraph (A) of paragraph (2) if there is no existing batterer's
program in the city, county, or city and county.
   (iii) The onsite review of the program, including monitoring of a
session to determine that the program adheres to applicable statutes
and regulations.
   (iv) The payment of the approval fee.
   (B) The probation department shall fix a fee for approval not to
exceed two hundred fifty dollars ($250) and for approval renewal not
to exceed two hundred fifty dollars ($250) every year in an amount
sufficient to cover its cost in administering the approval process
under this section.  No fee shall be charged for the approval of
local governmental entities.
   (C) The probation department has the sole authority to approve the
issuance, denial, suspension, or revocation of approval and to cease
new enrollments or referrals to a batterer's program under this
section.  The probation department shall review information relative
to a program's performance or failure to adhere to standards, or
both.  The probation department may suspend or revoke any approval
issued under this subdivision or deny an application to renew an
approval or to modify the terms and conditions of approval, based on
grounds established by probation, including, but not limited to,
either of the following:
   (i) Violation of this section by any person holding approval or by
a program employee in a program under this section.
   (ii) Misrepresentation of any material fact in obtaining the
approval.
   (6) For defendants who are chronic users or serious abusers of
drugs or alcohol, standard components in the program shall include
concurrent counseling for substance abuse and violent behavior, and
in appropriate cases, detoxification and abstinence from the abused
substance.
   (7) The program shall conduct an exit conference that assesses the
defendant's progress during his or her participation in the batterer'
s program.
  SEC. 152.  Section 1269b of the Penal Code is amended to read:
   1269b.  (a) The officer in charge of a jail where an arrested
person is held in custody, an officer of a sheriff's department or
police department of a city who is in charge of a jail or is employed
at a fixed police or sheriff's facility and is acting under an
agreement with the agency that keeps the jail wherein an arrested
person is held in custody, an employee of a sheriff's department or
police department of a city who is assigned by the department to
collect bail, the clerk of the municipal court of the judicial
district in which the offense was alleged to have been committed, and
the clerk of the superior court in which the case against the
defendant is pending may approve and accept bail in the amount fixed
by the warrant of arrest, schedule of bail, or order admitting to
bail in cash or surety bond executed by a certified, admitted surety
insurer as provided in the Insurance Code, to issue and sign an order
for the release of the arrested person, and to set a time and place
for the appearance of the arrested person before the appropriate
court and give notice thereof.
   (b) If a defendant has appeared before a judge of the court on the
charge contained in the complaint, indictment, or information, the
bail shall be in the amount fixed by the judge at the time of the
appearance; if that appearance has not been made, the bail shall be
in the amount fixed in the warrant of arrest or, if no warrant of
arrest has been issued, the amount of bail shall be pursuant to the
uniform countywide schedule of bail for the county in which the
defendant is required to appear, previously fixed and approved as
provided in subdivisions (c) and (d).
   (c) It is the duty of the superior  and municipal court judges in
each county to prepare, adopt, and annually revise, by a majority
vote, at a meeting called by the presiding judge of the superior
court of the county, a uniform countywide schedule of bail for all
bailable felony offenses.
   In adopting a uniform countywide schedule of bail for all bailable
offenses the judges shall consider the seriousness of the offense
charged.  In considering the seriousness of the offense charged the
judges shall assign an additional amount of required bail for each
aggravating or enhancing factor chargeable in the complaint,
including, but not limited to, additional bail for charges alleging
facts that would bring a person within any of the following sections:
  Section 667.5, 667.51, 667.6, 667.8, 667.85, 667.9, 667.10, 12022,
12022.1, 12022.2, 12022.3, 12022.4, 12022.5, 12022.53, 12022.6,
12022.7, 12022.8, or 12022.9, or Section 11356.5, 11370.2, or 11370.4
of the Health and Safety Code.
   In considering offenses wherein a violation of Chapter 6
(commencing with Section 11350) of Division 10 of the Health and
Safety Code is alleged, the judge shall assign an additional amount
of required bail for offenses involving large quantities of
controlled substances.
   (d) The municipal court judges in each county, at a meeting called
by the presiding judge of the municipal court at each county seat,
or the superior court judges in each county in which there is no
municipal court, at a meeting called by the presiding judge of the
superior court, shall prepare, adopt, and annually revise, by a
majority vote, a uniform, countywide schedule of bail for all
misdemeanor and infraction offenses except Vehicle Code infractions.
The penalty schedule for infraction violations of the Vehicle Code
shall be established by the Judicial Council in accordance with
Section 40310 of the Vehicle Code.
   (e) Each countywide bail schedule shall contain a list of the
offenses and the amounts of bail applicable thereto as the judges
determine to be appropriate.  If the schedules do not list all
offenses specifically, they shall contain a general clause for
designated amounts of bail as the judges of the county determine to
be appropriate for all the offenses not specifically listed in the
schedules.  A copy of the countywide bail schedule shall be sent to
the officer in charge of the county jail, to the officer in charge of
each city jail within the county, to each superior  and municipal
court judge and commissioner in the county, and to the Judicial
Council.
   (f) Upon posting bail, the defendant or arrested person shall be
discharged from custody as to the offense on which the bail is
posted.
   All money and surety bonds so deposited with an officer authorized
to receive bail shall be transmitted immediately to the judge or
clerk of the court by which the order was made or warrant issued or
bail schedule fixed.  If, in the case of felonies, an indictment is
filed, the judge or clerk of the court shall transmit all of the
money and surety bonds to the county clerk.
   (g) If a defendant or arrested person so released fails to appear
at the time and in the court so ordered upon his or her release from
custody, Sections 1305 and 1306 apply.
  SEC. 153.  Section 1347 of the Penal Code, as amended by Section
1.5 of Chapter 670 of the Statutes of 1998, is amended to read:
   1347.  (a) It is the intent of the Legislature in enacting this
section to provide the court with discretion to employ unusual court
procedures to protect the rights of a child witness, the rights of
the defendant, and the integrity of the judicial process.  In
exercising its discretion, the court necessarily will be required to
balance the rights of the defendant or defendants against the need to
protect a child witness and to preserve the integrity of the court's
truthfinding function.  This discretion is intended to be used
selectively when the facts and circumstances in the individual case
present compelling evidence of the need to use these unusual
procedures.
   (b) Notwithstanding any other law, the court in any criminal
proceeding, upon written notice  by the prosecutor made at least
three days prior to the date of the preliminary hearing or trial date
on which the testimony of the minor is scheduled, or during the
course of the proceeding on the court's own motion, may order that
the testimony of a minor 13 years of age or younger at the time of
the motion be taken by contemporaneous examination and
cross-examination in another place and out of the presence of the
judge, jury, defendant or defendants, and attorneys, and communicated
to the courtroom by means of closed-circuit television, if the court
makes all of the following findings:
   (1) The minor's testimony will involve a recitation of the facts
of either of the following:
   (A) An alleged sexual offense committed on or with the minor.
   (B) The minor is a victim of a violent felony, as defined in
subdivision (c) of Section 667.5.
   (2) The impact on the minor of one or more of the factors
enumerated in subparagraphs (A) to (D), inclusive, is shown by clear
and convincing evidence to be so substantial as to make the minor
unavailable as a witness unless closed-circuit television is used.
   (A) Threats of serious bodily injury to be inflicted on the minor
or a family member, of incarceration or deportation of the minor or a
family member, or of removal of the minor from the family or
dissolution of the family, in order to prevent or dissuade the minor
from attending or giving testimony at any trial or court proceeding,
or to prevent the minor from reporting the alleged sexual offense or
from assisting in criminal prosecution.
   (B) Use of a firearm or any other deadly weapon during the
commission of the crime.
   (C) Infliction of great bodily injury upon the victim during the
commission of the crime.
   (D) Conduct on the part of the defendant or defense counsel during
the hearing or trial that causes the minor to be unable to continue
his or her testimony.
   In making the determination required by this section, the court
shall consider the age of the minor, the relationship between the
minor and the defendant or defendants, any handicap or disability of
the minor, and the nature of the acts charged.  The minor's refusal
to testify shall not alone constitute sufficient evidence that the
special procedure described in this section is necessary to obtain
the minor's testimony.
        (3) The equipment available for use of closed-circuit
television would accurately communicate the image and demeanor of the
minor to the judge, jury, defendant or defendants, and attorneys.
   (c) If the court orders the use of closed-circuit television,
two-way closed-circuit television shall be used, except that if the
impact on the minor of one or more of the factors enumerated in
subparagraphs (A) to (D), inclusive, of paragraph (2) of subdivision
(b), is shown by clear and convincing evidence to be so substantial
as to make the minor unavailable as a witness even if two-way
closed-circuit television is used, one-way closed-circuit television
may be used.  The prosecution shall give the defendant or defendants
at least 30 days written notice of the prosecution's intent to seek
the use of one-way closed-circuit television, unless good cause is
shown to the court why this 30-day notice requirement should not
apply.
   (d) (1) The hearing on a motion brought pursuant to this section
shall be conducted out of the presence of the jury.
   (2) Notwithstanding Section 804 of the Evidence Code or any other
law, the court, in determining the merits of the motion, shall not
compel the minor to testify at the hearing; nor shall the court deny
the motion on the ground that the minor has not testified.
   (3) In determining whether the impact on an individual child of
one or more of the four factors enumerated in paragraph (2) of
subdivision (b) is so substantial that the minor is unavailable as a
witness unless two-way or one-way closed-circuit television is used,
the court may question the minor in chambers, or at some other
comfortable place other than the courtroom, on the record for a
reasonable period of time with the support person, the prosecutor,
and defense counsel present.  The defendant or defendants shall not
be present.  The court shall conduct the questioning of the minor and
shall not permit the prosecutor or defense counsel to examine the
minor.  The prosecutor and defense counsel shall be permitted to
submit proposed questions to the court prior to the session in
chambers.  Defense counsel shall be afforded a reasonable opportunity
to consult with the defendant or defendants prior to the conclusion
of the session in chambers.
   (e) When the court orders the testimony of a minor to be taken in
another place outside of the courtroom, the court shall do all of the
following:
   (1) Make a brief statement on the record, outside of the presence
of the jury, of the reasons in support of its order.  While the
statement need not include traditional findings of fact, the reasons
shall be set forth with sufficient specificity to permit meaningful
review and to demonstrate that discretion was exercised in a careful,
reasonable, and equitable manner.
   (2) Instruct the members of the jury that they are to draw no
inferences from the use of closed-circuit television as a means of
facilitating the testimony of the minor.
   (3) Instruct respective counsel, outside of the presence of the
jury, that they are to make no comment during the course of the trial
on the use of closed-circuit television procedures.
   (4) Instruct the support witness, outside of the presence of the
jury, that he or she is not to coach, cue, or in any way influence or
attempt to influence the testimony of the minor.
   (5) Order that a complete record of the examination of the minor,
including the images and voices of all persons who in any way
participate in the examination, be made and preserved on videotape in
addition to being stenographically recorded.  The videotape shall be
transmitted to the clerk of the court in which the action is pending
and shall be made available for viewing to the prosecuting attorney,
the defendant or defendants, and his or her attorney during ordinary
business hours.  The videotape shall be destroyed after five years
have elapsed from the date of entry of judgment.  If an appeal is
filed, the tape shall not be destroyed until a final judgment on
appeal has been ordered.  Any videotape that is taken pursuant to
this section is subject to a protective order of the court for the
purpose of protecting the privacy of the witness.  This subdivision
does not affect the provisions of subdivision (b) of Section 868.7.
   (f) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, only the minor, a support person
designated pursuant to Section 868.5, a nonuniformed bailiff, and,
after consultation with the prosecution and the defense, a
representative appointed by the court, shall be physically present
for the testimony.  A videotape shall record the image of the minor
and his or her testimony, and a separate videotape shall record the
image of the support person.
   (g) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, the minor shall be brought into
the judge's chambers prior to the taking of his or her testimony to
meet for a reasonable period of time with the judge, the prosecutor,
and defense counsel.  A support person for the minor shall also be
present.  This meeting shall be for the purpose of explaining the
court process to the child and to allow the attorneys an opportunity
to establish rapport with the child to facilitate later questioning
by closed-circuit television.  No participant shall discuss the
defendant or defendants or any of the facts of the case with the
minor during this meeting.
   (h) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, nothing in this section
prohibits the court from ordering the minor to be brought into the
courtroom for a limited purpose, including the identification of the
defendant or defendants as the court deems necessary.
   (i) The examination shall be under oath, and the defendant or
defendants shall be able to see and hear the minor witness and if
two-way closed-circuit television is used, the defendant's image
shall be transmitted live to the witness.
   (j) Nothing in this section affects the disqualification of
witnesses pursuant to Section 701 of the Evidence Code.
   (k) The cost of examination by contemporaneous closed-circuit
television ordered pursuant to this section shall be borne by the
court out of its existing budget.
   (l) The Judicial Council shall prepare and submit to the
Legislature, on or before December 31, 2000, a report on the
frequency of use and effectiveness of closed-circuit testimony.
   (m) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.
  SEC. 154.  Section 1347 of the Penal Code, as added by Section 1.6
of Chapter 670 of the Statutes of 1998, is amended to read:
   1347.  (a) It is the intent of the Legislature in enacting this
section to provide the court with discretion to employ unusual court
procedures to protect the rights of a child witness, the rights of
the defendant, and the integrity of the judicial process.  In
exercising its discretion, the court necessarily will be required to
balance the rights of the defendant or defendants against the need to
protect a child witness and to preserve the integrity of the court's
truthfinding function.  This discretion is intended to be used
selectively when the facts and circumstances in the individual case
present compelling evidence of the need to use these unusual
procedures.
   (b) Notwithstanding any other law, the court in any criminal
proceeding, upon written notice  by the prosecutor made at least
three days prior to the date of the preliminary hearing or trial date
on which the testimony of the minor is scheduled, or during the
course of the proceeding on the court's own motion, may order that
the testimony of a minor 13 years of age or younger at the time of
the motion be taken by contemporaneous examination and
cross-examination in another place and out of the presence of the
judge, jury, defendant or defendants, and attorneys, and communicated
to the courtroom by means of closed-circuit television, if the court
makes all of the following findings:
   (1) The minor's testimony will involve a recitation of the facts
of an alleged sexual offense committed on or with the minor.
   (2) The impact on the minor of one or more of the factors
enumerated in subparagraphs (A) to (D), inclusive, is shown by clear
and convincing evidence to be so substantial as to make the minor
unavailable as a witness unless closed-circuit television is used.
   (A) Threats of serious bodily injury to be inflicted on the minor
or a family member, of incarceration or deportation of the minor or a
family member, or of removal of the minor from the family or
dissolution of the family, in order to prevent or dissuade the minor
from attending or giving testimony at any trial or court proceeding,
or to prevent the minor from reporting the alleged sexual offense or
from assisting in criminal prosecution.
   (B) Use of a firearm or any other deadly weapon during the
commission of the crime.
   (C) Infliction of great bodily injury upon the victim during the
commission of the crime.
   (D) Conduct on the part of the defendant or defense counsel during
the hearing or trial that causes the minor to be unable to continue
his or her testimony.
   In making the determination required by this section, the court
shall consider the age of the minor, the relationship between the
minor and the defendant or defendants, any handicap or disability of
the minor, and the nature of the acts charged.  The minor's refusal
to testify shall not alone constitute sufficient evidence that the
special procedure described in this section is necessary to obtain
the minor's testimony.
   (3) The equipment available for use of closed-circuit television
would accurately communicate the image and demeanor of the minor to
the judge, jury, defendant or defendants, and attorneys.
   (c) If the court orders the use of closed-circuit television,
two-way closed-circuit television shall be used, except that if the
impact on the minor of one or more of the factors enumerated in
subparagraphs (A) to (D), inclusive, of paragraph (2) of subdivision
(b), is shown by clear and convincing evidence to be so substantial
as to make the minor unavailable as a witness even if two-way
closed-circuit television is used, one-way closed-circuit television
may be used.  The prosecution shall give the defendant or defendants
at least 30 days' written notice of the prosecution's intent to seek
the use of one-way closed-circuit television, unless good cause is
shown to the court why this 30-day notice requirement should not
apply.
   (d) (1) The hearing on a motion brought pursuant to this section
shall be conducted out of the presence of the jury.
   (2) Notwithstanding Section 804 of the Evidence Code or any other
law, the court, in determining the merits of the motion, shall not
compel the minor to testify at the hearing; nor shall the court deny
the motion on the ground that the minor has not testified.
   (3) In determining whether the impact on an individual child of
one or more of the four factors enumerated in paragraph (2) of
subdivision (b) is so substantial that the minor is unavailable as a
witness unless two-way or one-way closed-circuit television is used,
the court may question the minor in chambers, or at some other
comfortable place other than the courtroom, on the record for a
reasonable period of time with the support person, the prosecutor,
and defense counsel present.  The defendant or defendants shall not
be present.  The court shall conduct the questioning of the minor and
shall not permit the prosecutor or defense counsel to examine the
minor.  The prosecutor and defense counsel shall be permitted to
submit proposed questions to the court prior to the session in
chambers.  Defense counsel shall be afforded a reasonable opportunity
to consult with the defendant or defendants prior to the conclusion
of the session in chambers.
   (e) When the court orders the testimony of a minor to be taken in
another place outside of the courtroom, the court shall do all of the
following:
   (1) Make a brief statement on the record, outside of the presence
of the jury, of the reasons in support of its order.  While the
statement need not include traditional findings of fact, the reasons
shall be set forth with sufficient specificity to permit meaningful
review and to demonstrate that discretion was exercised in a careful,
reasonable, and equitable manner.
   (2) Instruct the members of the jury that they are to draw no
inferences from the use of closed-circuit television as a means of
facilitating the testimony of the minor.
   (3) Instruct respective counsel, outside of the presence of the
jury, that they are to make no comment during the course of the trial
on the use of closed-circuit television procedures.
   (4) Instruct the support witness, outside of the presence of the
jury, that he or she is not to coach, cue, or in any way influence or
attempt to influence the testimony of the minor.
   (5) Order that a complete record of the examination of the minor,
including the images and voices of all persons who in any way
participate in the examination, be made and preserved on videotape in
addition to being stenographically recorded.  The videotape shall be
transmitted to the clerk of the court in which the action is pending
and shall be made available for viewing to the prosecuting attorney,
the defendant or defendants, and his or her attorney during ordinary
business hours.  The videotape shall be destroyed after five years
have elapsed from the date of entry of judgment.  If an appeal is
filed, the tape shall not be destroyed until a final judgment on
appeal has been ordered.  Any videotape that is taken pursuant to
this section is subject to a protective order of the court for the
purpose of protecting the privacy of the witness.  This subdivision
does not affect subdivision (b) of Section 868.7.
   (f) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, only the minor, a support person
designated pursuant to Section 868.5, a nonuniformed bailiff, and,
after consultation with the prosecution and the defense, a
representative appointed by the court, shall be physically present
for the testimony.  A videotape shall record the image of the minor
and his or her testimony, and a separate videotape shall record the
image of the support person.
   (g) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, the minor shall be brought into
the judge's chambers prior to the taking of his or her testimony to
meet for a reasonable period of time with the judge, the prosecutor,
and defense counsel.  A support person for the minor shall also be
present.  This meeting shall be for the purpose of explaining the
court process to the child and to allow the attorneys an opportunity
to establish rapport with the child to facilitate later questioning
by closed-circuit television.  No participant shall discuss the
defendant or defendants or any of the facts of the case with the
minor during this meeting.
   (h) When the court orders the testimony of a minor to be taken in
another place outside the courtroom, nothing in this section
prohibits the court from ordering the minor to be brought into the
courtroom for a limited purpose, including the identification of the
defendant or defendants as the court deems necessary.
   (i) The examination shall be under oath, and the defendant or
defendants shall be able to see and hear the minor witness, and if
two-way closed-circuit television is used, the defendant's image
shall be transmitted live to the witness.
   (j) Nothing in this section affects the disqualification of
witnesses pursuant to Section 701 of the Evidence Code.
   (k) The cost of examination by contemporaneous closed-circuit
television ordered pursuant to this section shall be borne by the
court out of its existing budget.
   (l) This section shall become operative on January 1, 2001.
  SEC. 155.  Section 3003 of the Penal Code is amended to read:
   3003.  (a) Except as otherwise provided in this section, an inmate
who is released on parole shall be returned to the county that was
the last legal residence of the inmate prior to his or her
incarceration.
   For purposes of this subdivision, "last legal residence" shall not
be construed to mean the county wherein the inmate committed an
offense while confined in a state prison or local jail facility or
while confined for treatment in a state hospital.
   (b) Notwithstanding subdivision (a), an inmate may be returned to
another county if that would be in the best interests of the public.
If the Board of Prison Terms setting the conditions of parole for
inmates sentenced pursuant to subdivision (b) of Section 1168, or the
Department of Corrections setting the conditions of parole for
inmates sentenced pursuant to Section 1170, decides on a return to
another county, it shall place its reasons in writing in the parolee'
s permanent record and include these reasons in the notice to the
sheriff or chief of police pursuant to Section 3058.6.  In making its
decision, the paroling authority shall consider, among others, the
following factors, giving the greatest weight to the protection of
the victim and the safety of the community:
   (1) The need to protect the life or safety of a victim, the
parolee, a witness, or any other person.
   (2) Public concern that would reduce the chance that the inmate's
parole would be successfully completed.
   (3) The verified existence of a work offer, or an educational or
vocational training program.
   (4) The existence of family in another county with whom the inmate
has maintained strong ties and whose support would increase the
chance that the inmate's parole would be successfully completed.
   (5) The lack of necessary outpatient treatment programs for
parolees receiving treatment pursuant to Section 2960.
   (c) The Department of Corrections, in determining an out-of-county
commitment, shall give priority to the safety of the community and
any witnesses and victims.
   (d) In making its decision about an inmate who participated in a
joint venture program pursuant to Article 1.5 (commencing with
Section 2717.1) of Chapter 5, the paroling authority shall give
serious consideration to releasing him or her to the county where the
joint venture program employer is located if that employer states to
the paroling authority that he or she intends to employ the inmate
upon release.
   (e) (1) The following information, if available, shall be released
by the Department of Corrections to local law enforcement agencies
regarding a paroled inmate who is released in their jurisdictions:
   (A) Last, first, and middle name.
   (B) Birth date.
   (C) Sex, race, height, weight, and hair and eye color.
   (D) Date of parole and discharge.
   (E) Registration status, if the inmate is required to register as
a result of a controlled substance, sex, or arson offense.
   (F) California Criminal Information Number, FBI number, social
security number, and driver's license number.
   (G) County of commitment.
   (H) A description of scars, marks, and tattoos on the inmate.
   (I) Offense or offenses for which the inmate was convicted that
resulted in parole in this instance.
   (J) Address, including all of the following information:
   (i) Street name and number.  Post office box numbers are not
acceptable for purposes of this subparagraph.
   (ii) City and ZIP Code.
   (iii) Date that the address provided pursuant to this subparagraph
was proposed to be effective.
   (K) Contact officer and unit, including all of the following
information:
   (i) Name and telephone number of each contact officer.
   (ii) Contact unit type of each contact officer, such as units
responsible for parole, registration, or county probation.
   (L) A digitized image of the photograph and at least a
single-digit fingerprint of the parolee.
   (M) A geographic coordinate for the parolee's residence location
for use with a Geographical Information System (GIS) or comparable
computer program.
   (2) The information required by this subdivision shall come from
the statewide parolee data base.  The information obtained from each
source shall be based on the same timeframe.
   (3) All of the information required by this subdivision shall be
provided utilizing a computer-to-computer transfer in a format usable
by a desktop computer system.  The transfer of this information
shall be continually available to local law enforcement agencies upon
request.
   (4) The unauthorized release or receipt of the information
described in this subdivision is a violation of Section 11143.
   (f) Notwithstanding any other provision of law, an inmate who is
released on parole shall not be returned to a location within 35
miles of the actual residence of a victim of, or a witness to, a
violent felony as defined in paragraphs (1) to (7), inclusive, of
subdivision (c) of Section 667.5 or a felony in which the defendant
inflicts great bodily injury on any person other than an accomplice
that has been charged and proved as provided for in Section 12022.53,
12022.7, or 12022.9, if the victim or witness has requested
additional distance in the placement of the inmate on parole, and if
the Board of Prison Terms or the Department of Corrections finds that
there is a need to protect the life, safety, or well-being of a
victim or witness.
   (g) Notwithstanding any other law, an inmate who is released on
parole for any violation of Section 288 or 288.5 shall not be placed
within one-quarter mile of any school  that includes any or all of
grades kindergarten to 6, inclusive.
   (h) The authority shall give consideration to the equitable
distribution of parolees and the proportion of out-of-county
commitments from a county compared to the number of commitments from
that county when making parole decisions.
   (i) An inmate may be paroled to another state pursuant to any
other law.
   (j) (1) Except as provided in paragraph (2), the Department of
Corrections shall be the agency primarily responsible for, and shall
have control over, the program, resources, and staff implementing the
Law Enforcement Automated Data System (LEADS) in conformance with
subdivision (e).
   (2) Notwithstanding paragraph (1), the Department of Justice shall
be the agency primarily responsible for the proper release of
information under LEADS that relates to fingerprint cards.
  SEC. 156.  Section 4536.5 of the Penal Code is amended to read:
   4536.5.  The medical director or person in charge of a state
hospital or other public or private mental health facility to which a
person has been committed under the provisions of Article 4
(commencing with Section 6600) of Chapter 2 of Part 2 of the Welfare
and Institutions Code, shall promptly notify the Department of
Corrections' Sexually Violent Predator Parole Coordinator, the chief
of police of the city in which the hospital or facility is located,
or the sheriff of the county if the hospital or facility is located
in an unincorporated area, of the escape of the person, and shall
request the assistance of the chief of police or sheriff in
apprehending the person, and shall, within 48 hours of the escape of
the person, orally notify the court that made the commitment, the
prosecutor in the case, and the Department of Justice of the escape.

  SEC. 157.  Section 5066 of the Penal Code is amended to read:
   5066.  The Director of Corrections shall expand the existing
prison ombudsman program to ensure the comprehensive deployment of
ombudsmen throughout the state prison system with specific focus on
the maximum security institutions.  The director shall submit a
report to the chairs of the appropriate fiscal and policy committees
of the Legislature by February 1, 1999, outlining the plans for
implementation of this section.
  SEC. 158.  Section 6051 of the Penal Code is amended to read:
   6051.  The Inspector General shall conduct a management review
audit of any warden in the Department of Corrections or
superintendent in the Department of the Youth Authority who has held
his or her position for more than four years.  The management review
audit shall include, but not be limited to, issues relating to
personnel, training, investigations, and financial matters.  The
audit report shall be submitted to the secretary of the agency and
the respective director for evaluation and for any response deemed
necessary.  Any Member of the Legislature may request and shall be
provided with a copy of any audit report.  A report that involves
potential criminal investigations or prosecution shall be considered
confidential.
  SEC. 159.  Section 6065 of the Penal Code is amended to read:
   6065.  (a) The Legislature finds and declares that investigations
of the Department of Corrections and the Department of the Youth
Authority that are conducted by their respective offices of internal
affairs, or any successor to these offices, require appropriately
trained personnel, who perform their duties with honesty,
credibility, and without any conflicts of interest.
   (b) To meet the objectives stated in subdivision (a), the
following conditions shall be met:
   (1) Prior to training any peace officer who is selected to conduct
internal affairs investigations, the department shall conduct a
complete and thorough background check.  This background check shall
be in addition to the original background screening that was
conducted when the person was hired as a peace officer.  Each person
shall satisfactorily pass the second background check.  Any person
who has been the subject of a sustained, serious disciplinary action,
including, but not limited to, termination, suspension, or demotion,
shall not pass the background check.
   (2) All internal affairs allegations or complaints, whether
investigated or not, shall be logged and numbered sequentially on an
annual basis.  The log shall specify, but not be limited to, the
following information:  the sequential number of the allegation or
complaint, the date of receipt of the allegation or complaint, the
location or facility to which the allegation or complaint pertains,
and the disposition of all actions taken, including any final action
taken.  The log shall be made available to the Inspector General.
   (c) Consistent with the objectives expressed in subdivision (a),
investigators shall conduct investigations and inquiries in a manner
that provides a complete and thorough presentation of the facts
regarding the                                            allegation
or complaint.  All extenuating and mitigating facts shall be explored
and reported.  The role of the investigator is that of a factfinder.
  All reports prepared by an investigator shall provide the
appointing authority with a complete recitation of the facts, and
shall refrain from conjecture or opinion.
   (1) Uncorroborated or anonymous allegations shall not constitute
the sole basis for disciplinary action by the department, other than
an investigation.
   (2) All reports shall be submitted in a standard format, begin
with a statement of the allegation or complaint, provide all relevant
facts, and include the investigator's signature, certifying that the
investigator has complied with the provisions of this section
subject to compliance with Sections 118.1 and 148.6.
  SEC. 160.  Section 6126 of the Penal Code is amended to read:
   6126.  (a) The Inspector General shall be responsible for
reviewing departmental policy and procedures for conducting
investigations and audits of investigatory practices and other audits
and investigations of the Department of Corrections, the Department
of the Youth Authority, the Board of Prison Terms, the Youthful
Offender Parole Board, or the Board of Corrections, as requested by
either the Secretary of the Youth and Adult Correctional Agency or a
Member of the Legislature, pursuant to the approval of the Inspector
General under policies to be developed by the Inspector General.
   (b) Upon completion of an investigation or audit, the Inspector
General shall provide a response to the requester.
   (c) In the accomplishment of investigatory audits, the Inspector
General shall also identify areas of full and partial compliance, and
noncompliance, with departmental investigatory policies and
procedures, specify deficiencies in the completion and documentation
of investigatory processes, and recommend corrective actions,
including, but not limited to, additional training with respect to
investigative policies.
  SEC. 161.  Section 12071 of the Penal Code is amended to read:
   12071.  (a) (1) As used in this chapter, the term "licensee,"
"person licensed pursuant to Section 12071," or "dealer" means a
person who has all of the following:
   (A) A valid federal firearms license.
   (B) Any regulatory or business license, or licenses, required by
local government.
   (C) A valid seller's permit issued by the State Board of
Equalization.
   (D) A certificate of eligibility issued by the Department of
Justice pursuant to paragraph (4).
   (E) A license issued in the format prescribed by paragraph (6).
   (F) Is among those recorded in the centralized list specified in
subdivision (e).
   (2) The duly constituted licensing authority of a city, county, or
a city and county shall accept applications for, and may grant
licenses permitting, licensees to sell firearms at retail within the
city, county, or city and county.  The duly constituted licensing
authority shall inform applicants who are denied licenses of the
reasons for the denial in writing.
   (3) No license shall be granted to any applicant who fails to
provide a copy of his or her valid federal firearms license, valid
seller's permit issued by the State Board of Equalization, and the
certificate of eligibility described in paragraph (4).
   (4) A person may request a certificate of eligibility from the
Department of Justice, and the Department of Justice shall issue a
certificate to an applicant if the department's records indicate that
the applicant is not a person who is prohibited from possessing
firearms.
   (5) The department shall adopt regulations to administer the
certificate of eligibility program and shall recover the full costs
of administering the program by imposing fees assessed to applicants
who apply for those certificates.
   (6) A license granted by the duly constituted licensing authority
of any city, county, or city and county, shall be valid for not more
than one year from the date of issuance and shall be in one of the
following forms:
   (A) In the form prescribed by the Attorney General.
   (B) A regulatory or business license that states on its face
"Valid for Retail Sales of Firearms" and is endorsed by the signature
of the issuing authority.
   (C) A letter from the duly constituted licensing authority having
primary jurisdiction for the applicant's intended business location
stating that the jurisdiction does not require any form of regulatory
or business license or does not otherwise restrict or regulate the
sale of firearms.
   (7) Local licensing authorities may assess fees to recover their
full costs of processing applications for licenses.
   (b) A license is subject to forfeiture for a breach of any of the
following prohibitions and requirements:
   (1) (A) Except as provided in subparagraphs (B) and (C), the
business shall be conducted only in the buildings designated in the
license.
   (B) A person licensed pursuant to subdivision (a) may take
possession of firearms and commence preparation of registers for the
sale, delivery, or transfer of firearms at gun shows or events, as
defined in Section 178.100 of Title 27 of the Code of Federal
Regulations, or its successor, if the gun show or event is not
conducted from any motorized or towed vehicle.  A person conducting
business pursuant to this subparagraph shall be entitled to conduct
business as authorized herein at any gun show or event in the state
without regard to the jurisdiction within this state that issued the
license pursuant to subdivision (a), provided that the person
complies with (i) all applicable laws, including, but not limited to,
the waiting period specified in subparagraph (A) of paragraph (3),
and (ii) all applicable local laws, regulations, and fees, if any.
   A person conducting business pursuant to this subparagraph shall
publicly display his or her license issued pursuant to subdivision
(a), or a facsimile thereof, at any gun show or event, as specified
in this subparagraph.
   (C) A person licensed pursuant to subdivision (a) may engage in
the sale and transfer of firearms other than pistols, revolvers, or
other firearms capable of being concealed upon the person, at events
specified in subdivision (g) of Section 12078, subject to the
prohibitions and restrictions contained in that subdivision.
   A person licensed pursuant to subdivision (a) also may accept
delivery of firearms other than pistols, revolvers, or other firearms
capable of being concealed upon the person, outside the building
designated in the license, provided that the firearm is being donated
for the purpose of sale or transfer at an auction or similar event
specified in subdivision (g) of Section 12078.
   (D) The firearm may be delivered to the purchaser, transferee, or
person being loaned the firearm at one of the following places:
   (i) The building designated in the license.
   (ii) The places specified in subparagraph (B) or (C).
   (iii) The place of residence of, the fixed place of business of,
or on private property owned or lawfully possessed by, the purchaser,
transferee, or person being loaned the firearm.
   (2) The license or a copy thereof, certified by the issuing
authority, shall be displayed on the premises where it can easily be
seen.
   (3) No firearm shall be delivered:
   (A) Within 10 days of the application to purchase, or, after
notice by the department pursuant to subdivision (d) of Section
12076, within 10 days of the submission to the department of any
correction to the application, or within 10 days of the submission to
the department of any fee required pursuant to subdivision (e) of
Section 12076, whichever is later.
   (B) Unless unloaded and securely wrapped or unloaded and in a
locked container.
   (C) Unless the purchaser, transferee, or person being loaned the
firearm presents clear evidence of his or her identity and age to the
dealer.
   (D) Whenever the dealer is notified by the Department of Justice
that the person is in a prohibited class described in Section 12021
or 12021.1 of this code or Section 8100 or 8103 of the Welfare and
Institutions Code.
   (4) No pistol, revolver, or other firearm or imitation thereof
capable of being concealed upon the person, or placard advertising
the sale or other transfer thereof, shall be displayed in any part of
the premises where it can readily be seen from the outside.
   (5) The licensee shall agree to, and shall act properly and
promptly in, processing firearms transactions pursuant to Section
12082.
   (6) The licensee shall comply with Sections 12073, 12076, and
12077, subdivisions (a) and (b) of Section 12072, and subdivision (a)
of Section 12316.
   (7) The licensee shall post conspicuously within the licensed
premises the following warnings in block letters not less than one
inch in height:
   (A) "IF YOU LEAVE A LOADED FIREARM WHERE A CHILD OBTAINS AND
IMPROPERLY USES IT, YOU MAY BE FINED OR SENT TO PRISON."
   (B) "IF YOU KEEP A LOADED FIREARM, OR A PISTOL, REVOLVER, OR OTHER
FIREARM CAPABLE OF BEING CONCEALED UPON THE PERSON, WITHIN ANY
PREMISES UNDER YOUR CUSTODY OR CONTROL, AND A PERSON UNDER  THE AGE
OF 16 YEARS GAINS ACCESS TO THE FIREARM, YOU MAY BE GUILTY OF A
MISDEMEANOR OR A FELONY, UNLESS YOU STORED THE FIREARM IN A LOCKED
CONTAINER, OR LOCKED THE FIREARM WITH A LOCKING DEVICE, TO KEEP IT
FROM TEMPORARILY FUNCTIONING."
   (C) "DISCHARGING FIREARMS IN POORLY VENTILATED AREAS, CLEANING
FIREARMS, OR HANDLING AMMUNITION MAY RESULT IN EXPOSURE TO LEAD, A
SUBSTANCE KNOWN TO CAUSE BIRTH DEFECTS, REPRODUCTIVE HARM, AND OTHER
SERIOUS PHYSICAL INJURY.  HAVE ADEQUATE VENTILATION AT ALL TIMES.
WASH HANDS THOROUGHLY AFTER EXPOSURE."
   (D) "FEDERAL REGULATIONS PROVIDE THAT IF YOU DO NOT TAKE PHYSICAL
POSSESSION OF THE FIREARM THAT YOU ARE ACQUIRING OWNERSHIP OF WITHIN
30 DAYS AFTER YOU COMPLETE THE INITIAL BACKGROUND CHECK PAPERWORK,
THEN YOU HAVE TO GO THROUGH THE BACKGROUND CHECK PROCESS A SECOND
TIME IN ORDER TO TAKE PHYSICAL POSSESSION OF THAT FIREARM."
   (8) No pistol, revolver, or other firearm capable of being
concealed upon the person shall be delivered unless the purchaser,
transferee, or person being loaned the firearm presents to the dealer
a basic firearms safety certificate.
   (9) The licensee shall offer to provide the purchaser or
transferee of a firearm, or person being loaned a firearm, with a
copy of the pamphlet described in Section 12080 and may add the cost
of the pamphlet, if any, to the sales price of the firearm.
   (10) The licensee shall not commit an act of collusion as defined
in Section 12072.
   (11) The licensee shall post conspicuously within the licensed
premises a detailed list of each of the following:
   (A) All charges required by governmental agencies for processing
firearm transfers required by Sections 12076, 12082, and 12806.
   (B) All fees that the licensee charges pursuant to Sections 12082
and 12806.
   (12) The licensee shall not misstate the amount of fees charged by
a governmental agency pursuant to Sections 12076, 12082, and 12806.

   (13) The licensee shall report the loss or theft of any firearm
that is merchandise of the licensee, any firearm that the licensee
takes possession of pursuant to Section 12082, or any firearm kept at
the licensee's place of business within 48 hours of discovery to the
appropriate law enforcement agency in the city, county, or city and
county where the licensee's business premises are located.
   (14) In a city and county, or in the unincorporated area of a
county with a population of 200,000 persons or more according to the
most recent federal decennial census or within a city with a
population of 50,000 persons or more according to the most recent
federal decennial census, anytime the licensee is not open for
business, the licensee shall store all firearms kept in his or her
licensed place of business, using one of the following methods as to
each particular firearm:
   (A) Store the firearm in a secure facility that is a part of, or
that constitutes, the licensee's business premises.
   (B) Secure the firearm with a hardened steel rod or cable of at
least one-eighth inch in diameter through the trigger guard of the
firearm.  The steel rod or cable shall be secured with a hardened
steel lock that has a shackle.  The lock and shackle shall be
protected or shielded from the use of a bolt cutter and the rod or
cable shall be anchored in a manner that prevents the removal of the
firearm from the premises.
   (C) Store the firearm in a locked fireproof safe or vault in the
licensee's business premises.
   (15) The licensing authority in an unincorporated area of a county
with a population of less than 200,000 persons according to the most
recent federal decennial census, or within a city with a population
of less than 50,000 persons according to the most recent federal
decennial census, may impose the requirements specified in paragraph
(14).
   (16) The licensee shall, upon the issuance or renewal of a
license, submit a copy of the license to the Department of Justice.
   (17) The licensee shall maintain and make available a firearms
transaction record for inspection during business hours to any peace
officer, authorized local law enforcement employee, or Department of
Justice employee designated by the Attorney General, upon the
presentation of proper identification.
   (18) (A) On the date of receipt, the licensee shall report to the
Department of Justice, in a format prescribed by the department, the
acquisition by the licensee of the ownership of a pistol, revolver,
or other firearm capable of being concealed upon the person.
   (B) This paragraph does not apply to any of the following
transactions:
   (i) A transaction subject to the provisions of subdivision (n) of
Section 12078.
   (ii) The dealer acquired the firearm from a wholesaler.
   (iii) The dealer is also licensed as a secondhand dealer pursuant
to Article 4 (commencing with Section 21625) of Chapter 9 of Division
8 of the Business and Professions Code.
   (iv) The dealer acquired the firearm from a person who is licensed
as a manufacturer or importer to engage in those activities pursuant
to Chapter 44 (commencing with Section 921) of Title 18 of the
United States Code and any regulations issued pursuant thereto.
   (v) The dealer acquired the firearm from a person who resides
outside this state who is licensed pursuant to Chapter 44 (commencing
with Section 921) of Title 18 of the United States Code and any
regulations issued pursuant thereto.
   (19) The licensee shall forward, in a format prescribed by the
Department of Justice, information as required by the department on
any firearm that is not delivered within the time period set forth in
Section 178.102 (c) of Title 27 of the Code of Federal Regulations.

   (c) (1) As used in this article, "clear evidence of his or her
identity and age" means either of the following:
   (A) A valid California driver's license.
   (B) A valid California identification card issued by the
Department of Motor Vehicles.
   (2) As used in this article, a "basic firearms safety certificate"
means a basic firearms certificate issued to the purchaser,
transferee, or person being loaned the firearm by the Department of
Justice pursuant to Article 8 (commencing with Section 12800) of
Chapter 6.
   (3) As used in this section, a "secure facility" means a building
that meets all of the following specifications:
   (A) All perimeter doorways are one of the following:
   (i) A windowless steel security door equipped with both a dead
bolt and a doorknob lock.
   (ii) A windowed metal door that is equipped with both a dead bolt
and a doorknob lock.  If the window has an opening of five inches or
more measured in any direction, the window shall be covered with
steel bars at least one-half inch in diameter or metal grating of at
least nine gauge affixed to the exterior or interior of the door.
   (iii) A metal grate that is padlocked and affixed to the licensee'
s premises independent of the door and doorframe.
   (B) All windows are covered with steel bars.
   (C) Heating, ventilating, air-conditioning, and service openings
are secured with steel bars, metal grating, or an alarm system.
   (D) Any metal grates have spaces no larger than six inches wide
measured in any direction.
   (E) Any metal screens have spaces no larger than three inches wide
measured in any direction.
   (F) All steel bars are no further than six inches apart.
   (4) As used in this section, "licensed premises," "licensed place
of business," "licensee's place of business," or "licensee's business
premises" means the building designated in the license.
   (5) For purposes of paragraph (17) of subdivision (b):
   (A) A "firearms transaction record" is a record containing the
same information referred to in subdivision (a) of Section 178.124,
Section 178.124a, and subdivision (e) of Section 178.125 of Title 27
of the Code of Federal Regulations.
   (B) A licensee shall be in compliance with paragraph (17) of
subdivision (b) if he or she maintains and makes available for
inspection during business hours to any peace officer, authorized
local law enforcement employee, or Department of Justice employee
designated by the Attorney General, upon the presentation of proper
identification, the bound book containing the same information
referred to in subdivision (a) of Section 178.124 and subdivision (e)
of Section 178.125 of Title 27 of the Code of Federal Regulations
and the records referred to in subdivision (a) of Section 178.124 of
Title 27 of the Code of Federal Regulations.
   (d) Upon written request from a licensee, the licensing authority
may grant an exemption from compliance with the requirements of
paragraph (14) of subdivision (b) if the licensee is unable to comply
with those requirements because of local ordinances, covenants,
lease conditions, or similar circumstances not under the control of
the licensee.
   (e) Except as otherwise provided in this subdivision, the
Department of Justice shall keep a centralized list of all persons
licensed pursuant to subparagraphs (A) to (E), inclusive, of
paragraph (1) of subdivision (a).  The department may remove from
this list any person who knowingly or with gross negligence violates
this article.  Upon removal of a dealer from this list, notification
shall be provided to local law enforcement and licensing authorities
in the jurisdiction where the dealer's business is located.  The
department shall make information about an individual dealer
available, upon request, for one of the following purposes only:
   (1) For law enforcement purposes.
   (2) When the information is requested by a person licensed
pursuant to Chapter 44 (commencing with Section 921) of Title 18 of
the United States Code for determining the validity of the license
for firearm shipments.
   (3) When information is requested by a person promoting,
sponsoring, operating, or otherwise organizing a show or event as
defined in Section 178.100 of Title 27 of the Code of Federal
Regulations, or its successor, who possesses a valid certificate of
eligibility issued pursuant to Section 12071.1, if that information
is requested by the person to determine the eligibility of a
prospective participant in a gun show or event to conduct
transactions as a firearms dealer pursuant to subparagraph (B) of
paragraph (1) of subdivision (b).  Information provided pursuant to
this paragraph shall be limited to information necessary to
corroborate an individual's current license status.
   (f) The Department of Justice may inspect dealers to ensure
compliance with this article.  The department may assess an annual
fee, not to exceed eighty-five dollars ($85), to cover the reasonable
cost of maintaining the list described in subdivision (e), including
the cost of inspections.  Dealers whose place of business is in a
jurisdiction that has adopted an inspection program to ensure
compliance with firearms law shall be exempt from that portion of the
department's fee that relates to the cost of inspections.  The
applicant is responsible for providing evidence to the department
that the jurisdiction in which the business is located has the
inspection program.
   (g) The Department of Justice shall maintain and make available
upon request information concerning the number of inspections
conducted and the amount of fees collected pursuant to subdivision
(f), a listing of exempted jurisdictions, as defined in subdivision
(f), the number of dealers removed from the centralized list defined
in subdivision (e), and the number of dealers found to have violated
this article with knowledge or gross negligence.
   (h) Paragraph (14) or (15) of subdivision (b) does not apply to a
licensee organized as a nonprofit public benefit or mutual benefit
corporation organized pursuant to Part 2 (commencing with Section
5110) or Part 3 (commencing with Section 7110) of Division 2 of the
Corporations Code, if both of the following conditions are satisfied:

   (1) The nonprofit public benefit or mutual benefit corporation
obtained the dealer's license solely and exclusively to assist that
corporation or local chapters of that corporation in conducting
auctions or similar events at which firearms are auctioned off to
fund the activities of that corporation or the local chapters of the
corporation.
   (2) The firearms are not pistols, revolvers, or other firearms
capable of being concealed upon the person.
  SEC. 162.  Section 12085 of the Penal Code is amended to read:
   12085.  (a) Commencing July 1, 1999, no person, firm, or
corporation licensed to manufacture firearms pursuant to Chapter 44
(commencing with Section 921) of Title 18 of the United States Code
may manufacture firearms within this state unless licensed pursuant
to Section 12086.
   (b) Subdivision (a)  does not apply to a person licensed to
manufacture firearms pursuant to Chapter 44 (commencing with Section
921) of Title 18 of the United States Code who manufactures fewer
than  100 firearms in a calendar year within this state.
   (c) If a person, firm, or corporation required to be licensed
pursuant to Section 12086 ceases operations, then the records
required pursuant to paragraphs (6) and (10) of subdivision (c) of
Section 12086 shall be forwarded to the federal Bureau of Alcohol,
Tobacco, and Firearms within three days of the closure of business.
   (d) A violation of this section is a misdemeanor.
   (e) (1) As used in this section and Section 12086, the term
"firearm" includes the frame or receiver of the weapon.
   (2) As used in this section and Section 12086, the term "firearm"
includes the unfinished frame or receiver of a weapon that can be
readily converted to the functional condition of a finished frame or
receiver.
   (3) For purposes of this section and Section 12086, the term
"firearm" does not include an unloaded firearm that is defined as an
"antique firearm" in paragraph (16) of subsection (a) of Section 921
of Title 18 of the United States Code.
  SEC. 163.  Section 12086 of the Penal Code is amended to read:
   12086.  (a) (1) As used in this section, "licensee" means a
person, firm, or corporation that satisfies both of the following:
   (A) Has a license issued pursuant to paragraph (2) of subdivision
(b).
   (B) Is among those recorded in the centralized list specified in
subdivision (f).
   (2) As used in this section, "department" means the Department of
Justice.
   (b) (1) The Department of Justice shall accept applications for,
and shall grant licenses permitting, the manufacture of firearms
within this state.  The department shall inform applicants who are
denied licenses of the reasons for the denial in writing.
   (2) No license shall be granted by the department unless and until
the applicant presents proof that he or she has all of the
following:
   (A) A valid license to manufacture firearms issued pursuant to
Chapter 44 (commencing with Section  921) of Title 18 of the United
States Code.
   (B) Any regulatory or business license, or licenses, required by
local government.
   (C) A valid seller's permit or resale certificate issued by the
State Board of Equalization, if applicable.
   (D) A certificate of eligibility issued by the Department of
Justice pursuant to paragraph (4) of subdivision (a) of Section
12071.
   (3) The department shall adopt regulations to administer this
section and Section 12085 and shall recover the full costs of
administering the program by collecting fees from license applicants.
  Recoverable costs shall include, but not be limited to, the costs
of inspections and maintaining a centralized list of licensed firearm
manufacturers.  The fee for licensed manufacturers who produce fewer
than 500 firearms in a calendar year within this state shall not
exceed two hundred fifty dollars ($250) per year or the actual costs
of inspections and maintaining a centralized list of firearm
manufacturers and any other duties of the department required
pursuant to this section and Section 12085, whichever is less.
   (4) A license granted by the department shall be valid for no more
than one year from the date of issuance and shall be in the form
prescribed by the Attorney General.
   (c) A licensee shall comply with the following prohibitions and
requirements:
   (1) The business shall be conducted only in the buildings
designated in the license.
   (2) The license or a copy thereof, certified by the department,
shall be displayed on the premises where it can easily be seen.
   (3) Whenever a licensee discovers that a firearm has been stolen
or is missing from the licensee's premises, the licensee shall report
the loss or theft within 48 hours of the discovery to all of the
following:
   (A) The Department of Justice, in a manner prescribed by the
department.
   (B) The federal Bureau of Alcohol, Tobacco, and Firearms.
   (C) The police department in the city or city and county where the
building designated in the license is located.
   (D) If there is no police department in the city or city and
county where the building designated in the license is located, the
sheriff of the county where the building designated in the license is
located.
   (4) (A) The licensee shall require that each employee obtain a
certificate of eligibility pursuant to paragraph (4) of subdivision
(a) of Section 12071, which shall be renewed annually, prior to being
allowed to come into contact with any firearm.
   (B) The licensee shall prohibit any employee who the licensee
knows or reasonably should know is within a class of persons
prohibited from possessing firearms pursuant to Section 12021 or
12021.1 of this code, or Section 8100 or 8103 of the Welfare
                                            and Institutions Code,
from coming into contact with any firearm.
   (5) (A) Each firearm the licensee manufactures in this state shall
be identified with a unique serial number stamped onto the firearm
utilizing the method of compression stamping.
   (B) Licensed manufacturers who produce fewer than 500 firearms in
a calendar year within this state may serialize long guns only by
utilizing a method of compression stamping or by engraving the serial
number onto the firearm.
   (C) The licensee shall stamp the serial number onto the firearm
within one business day of the time the receiver or frame is
manufactured.
   (D) The licensee shall not use the same serial number for more
than one firearm.
   (6) (A) The licensee shall record the type, model, caliber, or
gauge, and serial number of each firearm manufactured or acquired,
and the date of the manufacture or acquisition, within one business
day of the manufacture or acquisition.
   (B) The licensee shall maintain permanently within the building
designated in the license the records required pursuant to
subparagraph (A).
   (C) Backup copies of the records described in subparagraph (A),
whether electronic or hard copy, shall be made at least once a month.
  These backup records shall be maintained in a facility separate
from the one in which the primary records are stored.
   (7) (A) The licensee shall allow the department to inspect the
building designated in the license to ensure compliance with the
requirements of this section.
   (B) The licensee shall allow any peace officer, authorized law
enforcement employee, or Department of Justice employee designated by
the Attorney General, upon the presentation of proper
identification, to inspect facilities and records during business
hours to ensure compliance with the requirements of this section.
   (8) The licensee shall store in a secure facility all firearms
manufactured and all barrels for firearms manufactured.
   (9) (A) The licensee shall notify the chief of police or other
head of the municipal police department in the city or city and
county where the building designated in the license is located that
the licensee is manufacturing firearms within that city or city and
county and the location of the licensed premises.
   (B) If there is no police department in the city or city and
county where the building designated in the license is located, the
licensee shall notify the sheriff of the county where the building
designated in the license is located that the licensee is
manufacturing firearms within that county and the location of the
licensed premises.
   (10) For at least 10 years, the licensee shall maintain records of
all firearms that are lost or stolen, as prescribed by the
department.
   (d) Except as otherwise provided in subdivision (e), as used in
this section, a "secure facility" means that the facility satisfies
all of the following:
   (1) The facility is equipped with a burglar alarm with central
monitoring.
   (2) All perimeter entries to areas in which firearms are stored
other than doors, including windows and skylights, are secured with
steel window guards or an audible, silent, or sonic alarm to detect
entry.
   (3) All perimeter doorways are designed in one of the following
ways:
   (A) A windowless steel security door equipped with both a deadbolt
and a doorknob lock.
   (B) A windowed metal door equipped with both a deadbolt and a
doorknob lock.  If the window has an opening of five inches or more
measured in any direction, the window is covered with steel bars of
at least one-half inch diameter or metal grating of at least nine
gauge affixed to the exterior or interior of the door.
   (C) A metal grate that is padlocked and affixed to the licensee's
premises independent of the door and doorframe.
   (D) Hinges and hasps attached to doors by welding, riveting, or
bolting with nuts on the inside of the door.
   (E) Hinges and hasps installed so that they cannot be removed when
the doors are closed and locked.
   (4) Heating, ventilating, air-conditioning, and service openings
are secured with steel bars, metal grating, or an alarm system.
   (5) No perimeter metal grates are capable of being entered by any
person.
   (6) Steel bars used to satisfy the requirements of this
subdivision are not capable of being entered by any person.
   (7) Perimeter walls of rooms in which firearms are stored are
constructed of concrete or at least 10-gauge expanded steel wire mesh
utilized along with typical wood frame and drywall construction.  If
firearms are not stored in a vault, the facility shall use an
exterior security-type door along with a high security, single-key
deadbolt, or other door that is more secure.  All firearms shall be
stored in a separate room away from any general living area or work
area.  Any door to the storage facility shall be locked while
unattended.
   (8) Perimeter doorways, including the loading dock area, are
locked at all times when not attended by paid employees or contracted
employees, including security guards.
   (9) Except when a firearm is currently being tested, any
ammunition on the premises is removed from all manufactured guns and
stored in a separate and locked room, cabinet, or box away from the
storage area for the firearms.  Ammunition may be stored with a
weapon only in a locked safe.
   (e) For purposes of this section, any licensed manufacturer who
produces fewer than 500 firearms in a calendar year within this state
may maintain a "secure facility" by complying with all of the
requirements described in subdivision (d), or may design a security
plan that is approved by the Department of Justice or the federal
Bureau of Alcohol, Tobacco, and Firearms.
   (1) If a security plan is approved by the federal Bureau of
Alcohol, Tobacco, and Firearms, the approved plan, along with proof
of approval, shall be filed with the Department of Justice and the
local police department.  If there is no police department, the
filing shall be with the county sheriff's office.
   (2) If a security plan is approved by the Department of Justice,
the approved plan, along with proof of approval, shall be filed with
the local police department.  If there is no police department, the
filing shall be with the county sheriff's office.
   (f) (1) Except as otherwise provided in this subdivision, the
Department of Justice shall maintain a centralized list of all
persons licensed pursuant to paragraph (2) of subdivision (b).  The
centralized list shall be provided annually to each police department
and county sheriff within the state.
   (2) Except as provided in paragraph (3), the license of any
licensee who violates this section may be revoked.
   (3) The license of any licensee who knowingly or with gross
negligence violates this section or violates this section three times
shall be revoked, and that person, firm, or corporation shall become
permanently ineligible to obtain a license pursuant to this section.

   (g) (1) Upon the revocation of the license, notification shall be
provided to local law enforcement authorities in the jurisdiction
where the licensee's business is located and to the federal Bureau of
Alcohol, Tobacco, and Firearms.
   (2) The department shall make information concerning the location
and name of a licensee available, upon request, for the following
purposes only:
   (A) Law enforcement.
   (B) When the information is requested by a person licensed
pursuant to Chapter 44 (commencing with Section 921) of Title 18 of
the United States Code for determining the validity of the license
for firearm shipments.
   (3) Notwithstanding paragraph (2), the department shall make the
name and business address of a licensee available to any person upon
written request.
   (h) The Department of Justice shall maintain and make available
upon request information concerning the number of inspections
conducted and the amount of fees collected pursuant to paragraph (3)
of subdivision (b), the number of licensees removed from the
centralized list described in subdivision (f), and the number of
licensees found to have violated this section.
  SEC. 164.  Section 12370 of the Penal Code is amended to read:
   12370.  (a) Any person who has been convicted of a violent felony,
as defined in subdivision (c) of Section 667.5, under the laws of
the United States, the State of California, or any other state,
government, or country, who purchases, owns, or possesses body armor,
as defined by Section 942 of Title 11 of the California Code of
Regulations, except as authorized under subdivision (b), is guilty of
a felony, punishable by imprisonment in a state prison for 16
months, or two or three years.
   (b) Any person whose employment, livelihood, or safety is
dependent on the ability to legally possess and use body armor, who
is subject to the prohibition imposed by subdivision (a) due to a
prior violent felony conviction, may file a petition with the chief
of police or county sheriff of the jurisdiction in which he or she
seeks to possess and use the body armor for an exception to this
prohibition.  The chief of police or sheriff may reduce or eliminate
the prohibition, impose conditions on reduction or elimination of the
prohibition, or otherwise grant relief from the prohibition as he or
she deems appropriate, based on the following:
   (1) A finding that the petitioner is likely to use body armor in a
safe and lawful manner.
   (2) A finding that the petitioner has a reasonable need for this
type of protection under the circumstances.
   In making its decision, the chief of police or sheriff shall
consider the petitioner's continued employment, the interests of
justice, any relevant evidence, and the totality of the
circumstances.  It is the intent of the Legislature that law
enforcement officials exercise broad discretion in fashioning
appropriate relief under this paragraph in cases in which relief is
warranted.  However, this paragraph  may not be construed to require
law enforcement officials to grant relief to any particular
petitioner.  Relief from this prohibition  does not relieve any other
person or entity from any liability that might otherwise be imposed.

   (c) The chief of police or sheriff shall require, as a condition
of granting an exception under subdivision (b), that the petitioner
agree to maintain on his or her person a certified copy of the law
enforcement official's permission to possess and use body armor,
including any conditions or limitations.
   (d) Law enforcement officials who enforce the prohibition
specified in subdivision (a) against a person who has been granted
relief pursuant to subdivision (b), shall be immune from any
liability for false arrest arising from the enforcement of this
subdivision unless the person has in his or her possession a
certified copy of the permission granting the person relief from the
prohibition, as required by subdivision (c).  This immunity from
liability  does not relieve any person or entity from any other
liability that might otherwise be imposed.
   (e) For purposes of this section only, "violent felony" refers to
the specific crimes listed in subdivision (c) of Section 667.5, and
to crimes defined under the applicable laws of the United States or
any other state, government, or country that are reasonably
equivalent to the crimes listed in subdivision (c) of Section 667.5.

  SEC. 165.  Section 13515.55 of the Penal Code is amended to read:
   13515.55.  Every city police officer or deputy sheriff at a
supervisory level who is assigned field or investigative duties shall
complete a high technology crimes and computer seizure training
course certified by the Commission on Peace Officer Standards and
Training by January 1, 2000, or within 18 months of assignment to
supervisory duties.  Completion of the course may be satisfied by
telecourse, video training tape, or other instruction.  This training
shall be offered to all city police officers and deputy sheriffs as
part of continuing professional training.  The training shall, at a
minimum, address relevant laws, recognition of high technology
crimes, and computer evidence collection and preservation.
  SEC. 166.  Section 13602 of the Penal Code is amended to read:
   13602.  (a) The Department of Corrections shall use the training
academy at Galt.  This academy shall be known as the Richard A. McGee
Academy.  The Department of the Youth Authority shall use the
training center at Stockton.  The training divisions, in using the
funds, shall endeavor to minimize costs of administration so that a
maximum amount of the funds will be used for providing training and
support to correctional peace officers while being trained by the
departments.
   (b) Each new cadet who attends an academy after July 1,  2000,
shall complete the course of training, pursuant to standards approved
by CPOST before he or she may be assigned to a post or job as a
peace officer.  After July 1, 2000, every newly appointed first-line
or second-line supervisor shall complete the course of training,
pursuant to standards approved by CPOST for that position.  Every
effort shall be made to provide training prior to commencement of
supervisorial duties.  If this training is not completed within six
months of appointment to that position, any first-line or second-line
supervisor shall not perform supervisory duties until the training
is completed.  CPOST shall report to the Governor and to the
appropriate policy and fiscal committees of the Legislature by
September 1, 1999, concerning the training standards determined for
line correctional peace officers and supervisors of the Department of
Corrections and the  Department of the Youth Authority.  This report
shall include, but not be limited to, a description of the standards
for the curriculum of the respective academies and the length of
time required to satisfactorily train officers for their duties.
   It is the intent of this section that the report be included in
the basis for a new budget change proposal for the administration to
consider in the 2000-01 Budget Act to enhance department training
operations.
  SEC. 167.  Section 10218 of the Public Resources Code is amended to
read:
   10218.  "Husbandry practices" means agricultural activities, such
as those specified in subdivision (e) of Section 3482.5 of the Civil
Code, conducted or maintained for commercial purposes in a manner
consistent with proper and accepted customs and standards, as
established and followed by similar agricultural operations in the
same locality.
  SEC. 168.  Section 14575 of the Public Resources Code is amended to
read:
   14575.  (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the sum of paragraphs (1) and (2), the department shall
establish a processing fee and a processing payment for the
container, by the type of the material of the container, at least
equal to the difference between the scrap value offered by a
statistically significant sample of container manufacturers, beverage
manufacturers, processors, or willing purchasers, for each container
sold by the beverage manufacturer, and the sum of both of the
following:
   (1) The actual cost for certified recycling centers, excluding
recycling centers that receive a convenience incentive payment and
certified processors that did not receive convenience incentive
payments in the year in which the processing fee is calculated or
recalculated, of receiving, handling, processing, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, for disposal,
calculated pursuant to subdivision (c).
   (2) A reasonable financial return for recycling centers and
processors, calculated pursuant to subdivision (b).
   (b) On January 1, 1999, and annually thereafter, the department
shall calculate weighted statewide average values for the amounts
specified in paragraphs (1) and (2) of subdivision (a) for each type
of container material sold and a new processing fee, which shall be
effective on that same date.
   (c) A processing fee established pursuant to this section shall be
based upon all of the following:
   (1) The average scrap values paid by willing purchasers during the
1990 calendar year for the initial calculation and the average scrap
values paid by willing purchasers during the calendar year directly
preceding the year in which the processing fee is calculated for any
subsequent calculation.
   (2) The latest available data indicating the volumes of beverage
containers collected by certified processors and recycling centers.
   (3) The actual recycling costs for certified recycling centers and
processors, as determined pursuant to paragraph (1) of subdivision
(a) for the 1989 calendar year for the initial calculation, and for
the second calendar year preceding the year in which the processing
fee is calculated for any subsequent calculation.
   (d) Every six months, or more frequently as determined to be
necessary by the department, the department may adjust a processing
fee established pursuant to this section if both of the following
occur:
   (1) The department determines that the average statewide scrap
values paid by willing purchasers are less than the average scrap
values used as the basis for the processing fee calculation.
   (2) The department determines that adjusting the processing fee is
necessary to further the objectives of this division.
   (e) The calculations of the statewide weighted average values and
processing fee made pursuant to subdivision (b) shall be based on
audited surveys of the costs specified in subdivision (a) at existing
certified recycling centers, reverse vending machines, and
processors, with standardized modifications for transportation
distances and factors specific to a particular region, as determined
by the department, and, if the container is not recyclable, local
disposal fees.  The processing fee shall be calculated in a manner
that furthers the purposes of this division and the fee shall be
sufficient to establish sufficient recycling locations and processors
to achieve the goals established pursuant to subdivision (c) of
Section 14501 and Section 14571.  Except for the first calculation of
a processing fee made pursuant to this section, 60 days prior to the
annual calculation of the processing fee, the department shall
submit a report to the Chairperson of the Assembly Natural Resources
Committee and the Chairperson of the Senate Natural Resources and
Wildlife Committee.  The report shall include a summary of the
fluctuations of costs and scrap values necessitating the
recalculation.  The report shall also highlight changes in markets,
new technologies, and other business and economic factors.  The
report shall include a description of the average per container
statewide costs of recycling beverage containers, by each material
type, for the following recycling systems, including a description of
any assumptions used to allocate undifferentiated costs among
material types, and a brief statement of the reason for their
adoption:
   (1) Automated recycling centers.
   (2) Staffed recycling centers.
   (3) Recycling centers established since September 29, 1988.
   (4) Recycling centers established prior to September 29, 1988.
   (5) Recyclers receiving convenience incentive payments, as
feasible.
   (6) Nonprofit dropoff programs.
   (7) Curbside recycling programs.
   (f) (1) Except as provided in paragraphs (2) and (3), every
beverage manufacturer shall pay to the department the applicable
processing fee for each container sold or transferred to a
distributor or dealer within 40 days of the sale in the form and in
the manner which the department may prescribe.
   (2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside of the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code.  If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail to that person
or entity.  The notice shall state that the processing fee shall be
remitted in full within 30 days of issuance of the notice or the
person or entity shall not be permitted to offer that beverage brand
for sale within the state.  If the person or entity fails to remit
the processing fee within 30 days of issuance of the notice, the
department shall notify the Department of Alcoholic Beverage Control
that the certificate holder has failed to comply, and the Department
of Alcoholic Beverage Control shall prohibit the offering or sale of
that beverage brand within the state.
   (B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
   (3) (A) Notwithstanding paragraph (1), a beverage manufacturer
may, upon the approval of the department, elect to make a single
annual payment of processing fees, if the beverage manufacturer's
projected processing fees for a calendar year total less than one
thousand dollars ($1,000).
   (B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
   (C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year preceding the
year in which the payment will be due.
   (4) The department shall pay the processing payments on redeemed
containers to processors, in the same manner as it pays refund values
pursuant to Sections 14573 and 14573.5.  The department shall pay
the processing fees collected on unredeemed containers into the fund.
  The department may not use processing fees collected on unredeemed
beverage containers to pay all or a portion of the processing costs
determined pursuant to subdivision (a).  The processor shall pay the
recycling center that portion of the processing payment representing
the actual cost and financial return incurred by the recycling
center, as specified in subdivision (a).
   (g) When assessing processing fees pursuant to subdivision (b),
the department shall assess the processing fee on each container
sold, by the type of material of the container, assuming that every
container sold will be redeemed for recycling, whether or not the
container is actually recycled.  When calculating and assessing
processing fees, the department also shall not assume that redemption
bonuses will be kept by recycling centers or locations.
   (h) The container manufacturer, or a designated agent, shall pay
to, or credit, the account of the beverage manufacturer an amount
equal to the processing payment.
   (i) This section shall become operative January 1, 1999.
  SEC. 169.  Section 33001 of the Public Resources Code is amended to
read:
   33001.  The Legislature hereby finds and declares that the Santa
Monica Mountains Zone, as defined in Section 33105, is a unique and
valuable economic, environmental, agricultural, scientific,
educational, and recreational resource that should be held in trust
for present and future generations; that, as the last large
undeveloped area contiguous to the shoreline within the greater Los
Angeles metropolitan region, comprised of Los Angeles and Ventura
Counties, it provides essential relief from the urban environment;
that it exists as a single ecosystem in which changes that affect one
part may also affect all other parts; and that the preservation and
protection of this resource is in the public interest.
  SEC. 170.  Section 64 of the Revenue and Taxation Code is amended
to read:
   64.  (a) Except as provided in subdivision (i) of Section 61 and
subdivisions (c) and (d) of this section, the purchase or transfer of
ownership interests in legal entities, such as corporate stock or
partnership or limited liability company interests, shall not be
deemed to constitute a transfer of the real property of the legal
entity.  This subdivision is applicable to the purchase or transfer
of ownership interests in a partnership without regard to whether it
is a continuing or a dissolved partnership.
   (b) Any corporate reorganization, where all of the corporations
involved are members of an affiliated group, and that qualifies as a
reorganization under Section 368 of the United States Internal
Revenue Code and that is accepted as a nontaxable event by similar
California statutes, or any transfer of real property among members
of an affiliated group, or any reorganization of farm credit
institutions pursuant to the federal Farm Credit Act of 1971 (Public
Law 92-181), as amended, shall not be a change of ownership.  The
taxpayer shall furnish proof, under penalty of perjury, to the
assessor that the transfer meets the requirements of this
subdivision.
   For purposes of this subdivision, "affiliated group" means one or
more chains of corporations connected through stock ownership with a
common parent corporation if both of the following conditions are
met:
   (1) One hundred percent of the voting stock, exclusive of any
share owned by directors, of each of the corporations, except the
parent corporation, is owned by one or more of the other
corporations.
   (2) The common parent corporation owns, directly, 100 percent of
the voting stock, exclusive of any shares owned by directors, of at
least one of the other corporations.
   (c) (1) When a corporation, partnership, limited liability
company, other legal entity, or any other person obtains control
through direct or indirect ownership or control of more than 50
percent of the voting stock of any corporation, or obtains a majority
ownership interest in any partnership, limited liability company, or
other legal entity through the purchase or transfer of corporate
stock, partnership, or limited liability company interest, or
ownership interests in other legal entities, including any purchase
or transfer of 50 percent or less of the ownership interest through
which control or a majority ownership interest is obtained, the
purchase or transfer of that stock or other interest shall be a
change of ownership of the real property owned
                      by the corporation, partnership, limited
liability company, or other legal entity in which the controlling
interest is obtained.
   (2) On or after January 1, 1996, when an owner of a majority
ownership interest in any partnership obtains all of the remaining
ownership interests in that partnership or otherwise becomes the sole
partner, the purchase or transfer of the minority interests, subject
to the appropriate application of the step-transaction doctrine,
shall not be a change in ownership of the real property owned by the
partnership.
   (d) If property is transferred on or after March 1, 1975, to a
legal entity in a transaction excluded from change in ownership by
paragraph (2) of subdivision (a) of Section 62, then the persons
holding ownership interests in that legal entity immediately after
the transfer shall be considered the "original coowners."  Whenever
shares or other ownership interests representing cumulatively more
than 50 percent of the total interests in the entity are transferred
by any of the original coowners in one or more transactions, a change
in ownership of that real property owned by the legal entity shall
have occurred, and the property that was previously excluded from
change in ownership under the provisions of paragraph (2) of
subdivision (a) of Section 62 shall be reappraised.
   The date of reappraisal shall be the date of the transfer of the
ownership interest representing individually or cumulatively more
than 50 percent of the interests in the entity.
   A transfer of shares or other ownership interests that results in
a change in control of a corporation, partnership, limited liability
company, or any other legal entity is subject to reappraisal as
provided in subdivision (c) rather than this subdivision.
   (e) To assist in the determination of whether a change of
ownership has occurred under subdivisions (c) and (d), the Franchise
Tax Board shall include a question in substantially the following
form on returns for partnerships, banks, and corporations (except
tax-exempt organizations):

   If the corporation (or partnership or limited liability company)
owns real property in California, has cumulatively more than 50
percent of the voting stock (or more than 50 percent of total
interest in both partnership or limited liability company capital and
partnership or limited liability company profits) (1) been
transferred by the corporation (or partnership or limited liability
company) since March 1, 1975, or (2) been acquired by another legal
entity or person during the year? (See instructions.)

   If the entity answers "yes" to (1) or (2) in the above question,
then the Franchise Tax Board shall furnish the names and addresses of
that entity and of the stock or partnership or limited liability
company ownership interest transferees to the State Board of
Equalization.

  SEC. 171.  Section 401.15 of the Revenue and Taxation Code is
amended to read:
   401.15.  (a) Notwithstanding any other provision of law, for any
county that makes available the credits provided for in Section
5096.3, the full cash values of certificated aircraft for fiscal
years to the 1997-98 fiscal year, inclusive, are presumed to be those
values enrolled by the county assessor or, in the case of timely
escape assessments upon certificated aircraft issued on or after
April 1, 1998, pursuant to Sections 531, 531.3, and 531.4, the values
enrolled upon those escape assessments, provided that the escape
assessment is made in accordance with the methodology in subdivision
(b).  For escape assessments for fiscal years to the 1997-98 fiscal
year, inclusive, the assessor shall use the methodology and minimum
and market values set by the California Assessors' Association for
the applicable fiscal year in lieu of the methodology set forth in
subparagraph (C) or (D) of paragraph (1) of subdivision (b).  The
assessor is not required to revise or change existing enrolled
assessments that are not subject to escape assessment to reflect the
methodology in this section.  Nothing in this section precludes audit
adjustments and offsets as set forth in Section 469 or the
correction of reporting errors raised by an airline.  Nothing in this
section affects any presumption of correctness concerning allocation
of aircraft values.
   (b) (1) For the 1998-99 fiscal year to the 2002-03 fiscal year,
inclusive, and including escape assessments levied on or after April
1, 1998, for any fiscal year to the 2002-03 fiscal year, inclusive,
except as otherwise provided in subdivision (a), certificated
aircraft shall be presumed to be valued at full market value if all
of the following conditions are met:
   (A) Except as provided in subparagraph (D), value is derived using
original cost.  The original cost shall be the greater of the
following:
   (i) Taxpayer's cost for that individual aircraft reported in
accordance with generally accepted accounting principles, so long as
that produces net acquisition cost, and to the extent not included in
the taxpayer's cost, transportation costs and capitalized interest
and the cost of any capital addition or modification made before a
transaction described in clause (ii).
   (ii) The cost established in a sale/leaseback or assignment of
purchase rights transaction for that individual aircraft that
transfers the benefits and burdens of ownership to the lessor for
United States federal income tax purposes.
   If the original cost for leased aircraft cannot be determined from
information reasonably available to the taxpayer, original cost may
be determined by reference to the "average new prices" column of the
Airliner Price Guide for that model, series, and year of manufacture
of aircraft.  If information is not available in the "average new
prices" column for that model, series, and year, the original cost
may be determined using the best indicator of original cost plus all
conversion costs incurred for that aircraft.  In the event of a
merger, bankruptcy, or change in accounting methods by the reporting
airline, there shall be a rebuttable presumption that the cost of the
individual aircraft and the acquisition date reported by the
acquired company, if available, or the cost reported prior to the
change in accounting method, are the original cost and the applicable
acquisition date.
   (B) Original cost, plus the cost of any capital additions or
modifications not otherwise included in the original cost, shall be
adjusted from the date of the acquisition of the aircraft to the lien
date using the producer price index for aircraft and a 16-year
straight-line percent good table starting from the delivery date of
the aircraft to the current owner or, in the case of a sale/leaseback
or assignment of purchase rights transaction, as described in this
section, the current operator with a minimum combined factor of 25
percent, unless this adjustment results in a value less than the
minimum value for that aircraft computed pursuant to subparagraph
(C), in which case the minimum value may be used.  If original cost
is determined by reference to the Airliner Price Guide "average new
prices" column, the adjustments required by this paragraph shall be
made by setting the acquisition date of the aircraft to be the date
of the aircraft's manufacture.
   (C) For certificated aircraft of a model and series that has been
in revenue service for eight or more years, the minimum value shall
not exceed the average of the used aircraft prices shown in columns
other than the "average new prices" column for used aircraft of the
oldest aircraft for that model and series in the Airliner Price Guide
most recently published as of the lien date.  Minimum values shall
not be utilized for certificated aircraft of a model and series that
has been in revenue service for less than eight years.
   (D) For out-of-production aircraft that were recommended to be
valued by a market approach for 1998 by the California Assessors'
Association, assessments will be based at the lower of the following:

   (i) The values established by the association for the 1998 lien
date.
   (ii) The average of the used aircraft prices shown in the columns
other than the "average new prices" column for used aircraft of the
five oldest years for the aircraft model and series or that lesser
time for which data is available in the Airliner Price Guide.
   (2) Notwithstanding paragraph (1), in computing assessed value,
the assessor may allow for extraordinary obsolescence if supported by
market evidence and the taxpayer may challenge the assessment for
failure to do so.  To constitute market evidence of extraordinary
obsolescence and to permit an assessment appeal, the evidence must
show that the functional and/or economic obsolescence is in excess of
10 percent of the value for the aircraft model and series otherwise
established pursuant to subparagraph (B), (C), or (D) of paragraph
(1).
   (3) For purposes of paragraph (1), if the Airliner Price Guide
ceases to be published or the format significantly changes, a guide
or adjustment agreed to by the airlines and the taxing counties shall
be substituted.
   (c) (1) For the 2003-04 fiscal year, certificated aircraft shall
be presumed to be valued at full market value if all of the following
conditions are met:
   (A) Except as provided in subparagraph (D), value is derived using
original cost.  The original cost shall be the greater of the
following:
   (i) Taxpayer's cost for that individual aircraft reported in
accordance with generally accepted accounting principles, so long as
that produces net acquisition cost, and to the extent not included in
the taxpayer's cost, transportation costs and capitalized interest
and the cost of any capital addition or modification made before a
transaction described in clause (ii).
   (ii) Taxpayer's cost as established pursuant to this subdivision
plus one-half of the incremental difference between taxpayer's cost
and the cost established in a sale/leaseback or assignment of
purchase rights transaction for individual aircraft that transfers
the benefits and burdens of ownership to the lessor for United States
federal income tax purposes.
   If the original cost for leased aircraft cannot be determined from
information reasonably available to the taxpayer, original cost may
be determined by reference to the "average new prices" column of the
Airliner Price Guide for that model, series, and year of manufacture
of aircraft.  If information is not available in the "average new
prices" column for that model, series, and year, the original cost
may be determined using the best indicator of original cost plus all
conversion costs incurred for that aircraft.  In the event of a
merger, bankruptcy, or change in accounting methods by the reporting
airline, there shall be a rebuttable presumption that the cost of the
individual aircraft and the acquisition date reported by the
acquired company, if available, or the cost reported prior to the
change in accounting method, are the original cost and the applicable
acquisition date.
   (B) Original cost, plus the cost of any capital additions or
modifications not otherwise included in original cost, shall be
adjusted from the date of the acquisition of the aircraft to the lien
date using the producer price index for aircraft and a 16-year
straight-line percent good table starting from the delivery date of
the aircraft to the current owner or, in the case of a sale/leaseback
or assignment of purchase rights transaction, as described in this
section, the current operator with a minimum combined factor of 25
percent, unless this adjustment results in a value less than the
minimum value for that aircraft computed pursuant to subparagraph
(C), in which case the minimum value may be used.  If original cost
is determined by reference to the Airliner Price Guide "average new
prices" column, the adjustments required by this paragraph shall be
made by setting the acquisition date of the aircraft to be the date
of the aircraft's manufacture.
   (C) For certificated aircraft of a model and series that has been
in revenue service for eight or more years, the minimum value shall
not exceed the average of the used aircraft prices shown in columns
other than the "average new prices" column for used aircraft of the
oldest aircraft for that model and series in the Airliner Price Guide
most recently published as of the lien date.  Minimum values shall
not be utilized for certificated aircraft of a model and series that
has been in revenue service for less than eight years.
   (D) For out-of-production aircraft that were recommended to be
valued by a market approach for 1998 by the California Assessors'
Association, their assessments shall be based at the lower of the
following:
   (i) The values established by the association for the 1998 lien
date.
   (ii) The average of the used aircraft prices shown in the columns
other than the "average new prices" column for used aircraft of the
five oldest years for the aircraft model and series or that lesser
time for which data is available in the Airliner Price Guide.
   (2) Notwithstanding paragraph (1), in computing assessed value,
the assessor may allow for extraordinary obsolescence if supported by
market evidence and the taxpayer may challenge the assessment for
failure to do so.  To constitute market evidence of extraordinary
obsolescence and to permit an assessment appeal, the evidence must
show that the functional and or economic obsolescence is in excess of
10 percent of the value for the aircraft model and series otherwise
established pursuant to subparagraph (B), (C), or (D) of paragraph
(1).
   (3) For purposes of paragraph (1), if the Airliner Price Guide
ceases to be published or the format significantly changes, a guide
or adjustment agreed to by the airlines and the taxing counties shall
be substituted.
   (d) To calculate the values prescribed in subdivisions (b) and
(c), the taxpayer shall, to the extent that information is reasonably
available to the taxpayer, furnish the county assessor with an
annual property statement that includes the aircraft original costs
as defined in subparagraph (A) of paragraph (1) of subdivision (b) or
(c).  If an air carrier that has this information reasonably
available to it fails to report original cost and additions, as
required by Sections 441 and 442, an assessor may make an appropriate
assessment pursuant to Section 501.
  SEC. 172.  Section 995.2 of the Revenue and Taxation Code is
amended to read:
   995.2.  The term "basic operational program," as used in Section
995, means a computer program that is fundamental and necessary to
the functioning of a computer.  A basic operational program is that
part of an operating system including supervisors, monitors,
executives, and control or master programs that consist of the
control program elements of that system.
   For purposes of this section, the terms "control program" and
"basic operational program" are interchangeable.  A control program,
as opposed to a processing program, controls the operation of a
computer by managing the allocation of all system resources,
including the central processing unit, main storage, input/output
devices and processing programs.  A processing program is used to
develop and implement the specific applications that the computer is
to perform.  Its operation is possible only through the facilities
provided by the control program.  It is not in itself fundamental and
necessary to the functioning of a computer.
   Excluded from the term "basic operational program" are processing
programs, which consist of language translators, including, but not
limited to, assemblers and compilers; service programs, including,
but not limited to, data set utilities, sort/merge utilities, and
emulators; data management systems, also known as generalized
file-processing software; and application programs, including, but
not limited to, payroll, inventory control, and production control.
Also excluded from the term "basic operational program" are programs
or parts of programs developed for or by a user if they were
developed solely for the solution of an individual operational
problem of the user.
   A control program, as used in this section, includes the following
functions:  selection, assignment, and control of input and output
devices; loading of programs, including selection of programs from a
system resident library; handling the steps necessary to accomplish
job-to-job transition; controlling the allocation of memory;
controlling concurrent operation of multiple programs or computers;
and protecting data from being inadvertently destroyed as a result of
operator program error.
  SEC. 173.  Section 3772.5 of the Revenue and Taxation Code is
amended to read:
   3772.5.  For purposes of this chapter:
   (a) "Low-income persons" means persons and families of low or
moderate income, as defined by Section 50093 of the Health and Safety
Code.
   (b) "Nonprofit organization" means a nonprofit organization
incorporated pursuant to Part 2 (commencing with Section 5110) of
Division 2 of Title 1 of the Corporations Code for the purpose of
acquisition of either of the following:
   (1) Single-family or multifamily dwellings for rehabilitation and
sale or rent to low-income persons, or for other use to serve
low-income persons.
   (2) Vacant land for construction of residential dwellings and
subsequent sale or rent to low-income persons, for other use to serve
low-income persons, or for dedication of that vacant land to public
use.
   (c) "Rehabilitation" means repairs and improvements to a
substandard building, as defined in Section 17920.3 of the Health and
Safety Code, necessary to make it a building that is not a
substandard building.
  SEC. 174.  Section 17275.6 of the Revenue and Taxation Code is
amended to read:
   17275.6.  For taxable years beginning on or after January 1, 1998,
Section 170(e)(1) of the Internal Revenue Code, relating to certain
contributions of ordinary income and capital gain property, is
modified to provide that for purposes of applying Section 170(e)(1)
of the Internal Revenue Code in the case of a charitable contribution
of stock in an "S corporation," rules similar to the rules of
Section 751 of the Internal Revenue Code, relating to unrealized
receivables and inventory items, shall apply in determining whether
gain on the stock would have been long-term capital gain if the stock
were sold by the taxpayer.
  SEC. 175.  Section 19057 of the Revenue and Taxation Code is
amended to read:
   19057.  (a) Except in the case of a false or fraudulent return and
except as otherwise expressly provided in this part, every notice of
a proposed deficiency assessment shall be mailed to the taxpayer
within four years after the return was filed.  No deficiency shall be
assessed or collected with respect to the year for which the return
was filed unless the notice is mailed within the four-year period or
the period otherwise provided.  For purposes of this chapter, the
term "return" means the return required to be filed by the taxpayer
and does not include a return of any person from whom the taxpayer
has received an item of income, gain, loss, deduction, or credit.
   (b) The running of the period of limitations provided in
subdivision (a) on mailing a notice of proposed deficiency assessment
shall, in a case under Title 11 of the United States Code, be
suspended for any period during which the Franchise Tax Board is
prohibited by reason of that case from mailing the notice of proposed
deficiency assessment and for 60 days thereafter.
   (c) Where, within the 60-day period ending on the day on which the
time prescribed in this section for the assessment of any tax
imposed under Part 10 (commencing with Section 17001) or Part 11
(commencing with Section 23001) for any taxable year would otherwise
expire, the Franchise Tax Board receives a written document, other
than an amended return or a report required by Section 18622, signed
by the taxpayer showing that the taxpayer owes an additional amount
of that tax for that taxable year, the period for the assessment of
an additional amount in excess of the amount shown on either an
original or amended return shall not expire before the day 60 days
after the day on which the Franchise Tax Board receives that
document.
   (d) If a taxpayer determines in good faith that it is an exempt
organization and files a return as an exempt organization under
Section 23772, and if the taxpayer is thereafter held to be a taxable
organization for the taxable year for which the return is filed,
that return shall be deemed the return of the organization for the
purposes of this section.
  SEC. 176.  Section 19141.6 of the Revenue and Taxation Code is
amended to read:
   19141.6.  (a) Each taxpayer determining its income subject to tax
pursuant to Section 25101 or electing to file pursuant to Section
25110 shall, for income years beginning on or after January 1, 1994,
maintain (in the location, in the manner, and to the extent
prescribed in regulations promulgated by the Franchise Tax Board on
or before December 31, 1995) and make available upon request all of
the following:
   (1) Any records as may be appropriate to determine the correct
treatment of the components that are a part of one or more unitary
businesses for purposes of determining the income derived from or
attributable to this state pursuant to Section 25101 or 25110.
   (2) Any records as may be appropriate to determine the correct
treatment of amounts that are attributable to the classification of
an item as business or nonbusiness income for purposes of Article 2
(commencing with Section 25120) of Chapter 17 of Part 11.
   (3) Any records as may be appropriate to determine the correct
treatment of the apportionment factors for purposes of Article 2
(commencing with Section 25120) of Chapter 17 of Part 11.
   (4) Documents and information, including any questionnaires
completed and submitted to the Internal Revenue Service, that are
necessary to audit issues involving attribution of income to the
United States or foreign jurisdictions under Section 882 of, or
Subpart F of Part III of Subchapter N of, or similar provisions of,
the Internal Revenue Code.
   (b) For purposes of this section:
   (1) Information for any year shall be retained for that period of
time in which the taxpayers' income or franchise tax liability to
this state may be subject to adjustment, including all periods in
which additional income or franchise taxes may be assessed, not to
exceed eight years from the due date or extended due date of the
return, or during which a protest is pending before the Franchise Tax
Board, or an appeal is pending before the State Board of
Equalization, or a lawsuit is pending in the courts of this state or
the United States with respect to California franchise or income tax.

   (2) "Related party" means corporations that are related because
one owns or controls, directly or indirectly, more than 50 percent of
the stock of the other or because more than 50 percent of the voting
stock of each is owned or controlled, directly or indirectly, by the
same interests.
   (3) "Records" includes any books, papers, or other data.
   (c) (1) If a corporation subject to this section fails to maintain
or fails to cause another to maintain records as required by
subdivision (a), that corporation shall pay a penalty of ten thousand
dollars ($10,000) for each income year with respect to which the
failure occurs.
   (2) If any failure described in paragraph (1) continues for more
than 90 days after the day on which the Franchise Tax Board mails
notice of the failure to the corporation, that corporation shall pay
a penalty (in addition to the amount required under paragraph (1)) of
ten thousand dollars ($10,000) for each 30-day period (or fraction
thereof) during which the failure continues after the expiration of
the 90-day period.  The additional penalty imposed by this
subdivision shall not exceed a maximum of fifty thousand dollars
($50,000) if the failure to maintain or the failure to cause another
to maintain is not willful.  This maximum shall apply with respect to
income years beginning on or after January 1, 1994, and before the
earlier of the first day of the month following the month in which
regulations are adopted pursuant to this section or December 31,
1995.
   (3) For purposes of this section, the time prescribed by
regulations to maintain records (and the beginning of the 90-day
period after notice by the Franchise Tax Board) shall be treated as
not earlier than the last day on which (as shown to the satisfaction
of the Franchise Tax Board) reasonable cause existed for failure to
maintain the records.
   (d) (1) The Franchise Tax Board may apply the rules of paragraph
(2) whether or not the board begins a proceeding to enforce a
subpoena, or subpoena duces tecum, if subparagraphs (A), (B), and (C)
apply:
   (A) For purposes of determining the correct treatment under Part
11 (commencing with Section 23001) of the items described in
subdivision (a), the Franchise Tax Board issues a subpoena or
subpoena duces tecum to a corporation to produce (either directly or
as agent for the related party) any records or testimony.
   (B) The subpoena or subpoena duces tecum is not quashed in a
proceeding begun under paragraph (3) and is not determined to be
invalid in a proceeding begun under Section 19504 to enforce the
subpoena or subpoena duces tecum.
   (C) The corporation does not substantially comply in a timely
manner with the subpoena or subpoena duces tecum and the Franchise
Tax Board has sent by certified or registered mail a notice to that
corporation that it has not substantially complied.
   (D) If the corporation fails to maintain or fails to cause another
to maintain records as required by subdivision (a), and by reason of
that failure, the subpoena, or subpoena duces tecum, is quashed in a
proceeding described in subparagraph (B) or the corporation is not
able to provide the records requested in the subpoena or subpoena
duces tecum, the Franchise Tax Board may apply the rules of paragraph
(2) to any of the items described in subdivision (a) to which the
records relate.
   (2) (A) All of the following shall be determined by the Franchise
Tax Board in the Franchise Tax Board's sole discretion from the
Franchise Tax Board's own knowledge or from information the Franchise
Tax Board may obtain through testimony or otherwise:
   (i) The components that are a part of one or more unitary
businesses for purposes of determining the income derived from or
attributable to this state pursuant to Section 25101 or 25110.

(ii) Amounts that are attributable to the classification of an item
as business or nonbusiness income for purposes of Article 2
(commencing with Section 25120) of Chapter 17 of Part 11.
   (iii) The apportionment factors for purposes of Article 2
(commencing with Section 25120) of Chapter 17 of Part 11.
   (iv) The correct amount of income under Section 882 of, or Subpart
F of Part III of Subchapter N of, or similar provisions of, the
Internal Revenue Code.
   (B) This paragraph shall apply to determine the correct treatment
of the items described in subdivision (a) unless the corporation is
authorized by its related parties (in the manner and at the time as
the Franchise Tax Board shall prescribe) to act as the related
parties' limited agent solely for purposes of applying Section 19504
with respect to any request by the Franchise Tax Board to examine
records or produce testimony related to any item described in
subdivision (a) or with respect to any subpoena or subpoena duces
tecum for the records or testimony.  The appearance of persons or the
production of records by reason of the corporation being an agent
shall not subject those persons or records to legal process for any
purpose other than determining the correct treatment under Part 11 of
the items described in subdivision (a).
   (C) Determinations made in the sole discretion of the Franchise
Tax Board pursuant to this paragraph may be appealed to the State
Board of Equalization, in the manner and at the time prescribed by
Section 19045 or 19324, or may be the subject of an action to recover
tax, in the manner and at a time prescribed by Section 19382.  The
review of determinations by the board or the court shall be limited
to whether the determinations were arbitrary or capricious, or are
not supported by substantial evidence.
   (3) (A) Notwithstanding any other law or rule of law, any
reporting corporation to which the Franchise Tax Board issues a
subpoena or subpoena duces tecum referred to in subparagraph (A) of
paragraph (1) shall have the right to begin a proceeding to quash the
subpoena or subpoena duces tecum not later than the 90th day after
the subpoena or subpoena duces tecum was issued.  In that proceeding,
the Franchise Tax Board may seek to compel compliance with the
subpoena or subpoena duces tecum.
   (B) Notwithstanding any other law or rule of law, any reporting
corporation that has been notified by the Franchise Tax Board that it
has determined that the corporation has not substantially complied
with a subpoena or subpoena duces tecum referred to in paragraph (1)
shall have the right to begin a proceeding to review the
determination not later than the 90th day after the day on which the
notice referred to in subparagraph (C) of paragraph (1) was mailed.
If the proceeding is not begun on or before the 90th day, the
determination by the Franchise Tax Board shall be binding and shall
not be reviewed by any court.
   (C) The superior courts of the State of California for the
Counties of Los Angeles, Sacramento, and San Diego, and for the City
and County of San Francisco, shall have jurisdiction to hear any
proceeding brought under subparagraphs (A) and (B).  Any order or
other determination in the proceeding shall be treated as a final
order that may be appealed.
   (D) If any corporation takes any action as provided in
subparagraphs (A) and (B), the running of any period of limitations
under Sections 19057 to 19064, inclusive (relating to the assessment
and collection of tax), or under Section 19704 (relating to criminal
prosecutions) with respect to that corporation shall be suspended for
the period during which the proceedings, and appeals therein, are
pending.  In no event shall any period expire before the 90th day
after the day on which there is a final determination in the
proceeding.
  SEC. 177.  Section 19271 of the Revenue and Taxation Code is
amended to read:
   19271.  (a) (1) For purposes of this article:
   (A) "Child support" means support of a child, spouse, or family as
provided in Section 150 of the Family Code.
   (B) "Child support delinquency" means a child support obligation
that may include or be limited to interest, fees, or penalties, on
which payment then due has not been received following the expiration
of 90 days from the date payment is due.
   (C) "Earnings" may include the items described in Section 5206 of
the Family Code.
   (2) A county district attorney enforcing child support obligations
pursuant to Section 11475.1 of the Welfare and Institutions Code
shall refer child support delinquencies to the Franchise Tax Board
for collection.   If there is a child support delinquency at the time
the case is opened by the district attorney, the case shall be
referred to the Franchise Tax Board no later than 90 days after
receipt of the case by the district attorney.  A county district
attorney may also refer to the Franchise Tax Board a child support
obligation that is 30 days or more past due, and any of these
obligations shall be collected as if they were delinquencies
otherwise described in this subdivision.
   (3) Referrals shall be transmitted in the form and manner
prescribed by the Franchise Tax Board.
   (4) To manage the growth in the number of referrals that it may
receive, the Franchise Tax Board may phase in the referrals as
administratively necessary.
   (5) At least 20 days prior to the date that the Franchise Tax
Board commences a collection action under this article, the Franchise
Tax Board shall mail notice of the amount due to the obligated
parent at the last known address for payment and advise that person
that failure to pay will result in collection action.  If the
obligated parent disagrees with the amount due, the obligated parent
shall be instructed to contact the county district attorney.
   (b) (1) (A) Except as otherwise provided in subparagraph (B), when
a delinquency is referred to the Franchise Tax Board pursuant to
subdivision (a), the amount of the child support delinquency shall be
collected from any obligated parent by the Franchise Tax Board in
any manner authorized under the law for collection of a delinquent
personal income tax liability, including, but not limited to,
issuance of an order and levy under Article 4 (commencing with
Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of
the Code of Civil Procedure in the manner provided for earnings
withholding orders for taxes.  Any law providing for the collection
of a delinquent personal income tax liability shall apply to any
delinquency referred under this article in the same manner and with
the same force and effect and to the full extent as if the language
of those laws had been incorporated in full into this article, except
to the extent that any provision is either inconsistent with a
provision of this article or is not relevant to this article.
   (B) When a delinquency is referred to the Franchise Tax Board
pursuant to subdivision (a), or at any time thereafter if the
obligated parent owes a delinquent personal income tax liability, the
Franchise Tax Board shall not engage in, or shall cease, any
involuntary collection action to collect the delinquency referred
under this article until the delinquent personal income tax liability
is paid in full.  If the obligated parent owes a delinquent personal
income tax liability when a delinquency is referred, the Franchise
Tax Board shall mail the notice specified in paragraph (5) of
subdivision (a).  At any time thereafter, the Franchise Tax Board may
mail any other notice to the obligated parent for voluntary payment
as the Franchise Tax Board deems necessary.  However, the Franchise
Tax Board may engage in the collection of a delinquency referred
pursuant to subdivision (a) under either of the following
circumstances:
   (i) The delinquent personal income tax liability is discharged
from accountability pursuant to Section 13940 of the Government Code.

   (ii) The obligor has entered into an installment payment agreement
for the delinquent personal income tax liability and is in
compliance with that agreement, and the Franchise Tax Board
determines that collection of the delinquency referred pursuant to
subdivision (a) would not jeopardize payments under the installment
agreement.
   (C) For purposes of subparagraph (B):
   (i) "Involuntary collection action" means those actions authorized
by Section 18670, 18670.5, 18671, or 19264, by Article 3 (commencing
with Section 19231), or by Chapter 5 (commencing with Section
706.010) of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
   (ii) "Delinquent personal income tax liability" means any taxes,
additions to tax, penalties, interest, fees, or other related amounts
due and payable under Part 10 (commencing with Section 17001) or
this part.
   (iii) "Voluntary payment" means any payment made by obligated
parents in response to the notice specified in paragraph (5) of
subdivision (a) or any other notice for voluntary payment mailed by
the Franchise Tax Board.
   (2) Any compensation, fee, commission, expense, or other fee for
service incurred by the Franchise Tax Board in the collection of a
child support delinquency authorized under this article shall not be
an obligation of, or collected from, the obligated parent.  A
referred child support delinquency shall be final and due and payable
to the State of California upon written notice to the obligated
parent by the Franchise Tax Board.
   (3) For purposes of administering this article:
   (A) This chapter and Chapter 7 (commencing with Section 19501)
shall apply, except as otherwise provided by this article.
   (B) Any services, information, or enforcement remedies available
to a district attorney or the Title IV-D agency in collecting support
delinquencies or locating absent or noncustodial parents shall be
available to the Franchise Tax Board for purposes of collecting child
support delinquencies under this article, including, but not limited
to, any information that may be disclosed by the Franchise Tax Board
to the California Parent Locator Service under Section 19548.
   (C) A request by the Franchise Tax Board for information from a
financial institution shall be treated in the same manner and to the
same extent as a request for information from a district attorney
referring to a support order pursuant to Section 11475.1 of the
Welfare and Institutions Code for purposes of Chapter 20 (commencing
with Section 7460) of Division 7 of Title 1 of the Government Code
(relating to governmental access to financial records),
notwithstanding any other provision of law which is inconsistent or
contrary to this paragraph.
   (D) The amount to be withheld in an order and levy to collect
child support delinquencies under Article 4 (commencing with Section
706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure is the amount required to be withheld pursuant to
an earnings withholding order for support under Section 706.052 of
the Code of Civil Procedure.
   (E) Nothing in this article shall be construed to modify the tax
intercept provisions of Article 8 (commencing with Section 708.710)
of Chapter 6 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
   (c) Interest on the delinquency shall be computed pursuant to
Section 685.010 of the Code of Civil Procedure.
   (d) If the collection action would cause undue financial hardship
to the obligated parent, would threaten the health or welfare of the
obligated parent or his or her family, or would cause undue
irreparable loss to the obligated parent, the obligated parent may
notify the Franchise Tax Board, which shall, upon being notified,
refer the obligated parent to the referring county district attorney,
unless the Franchise Tax Board is directed otherwise by the county
district attorney for purposes of more effectively administering this
article.
   (e) (1) In no event shall a collection under this article be
construed to be a payment of income taxes imposed under this part.
   (2) If an obligated parent overpays a liability imposed under this
part, the overpayment shall not be credited against any delinquency
collected pursuant to this article.  If an overpayment of a liability
imposed under this part is offset and distributed to a referring
county district attorney pursuant to Sections 12419.3 and 12419.5 of
the Government Code or Section 708.740 of the Code of Civil
Procedure, and thereby reduces the amount of the referred
delinquency, the referring county district attorney shall immediately
notify the Franchise Tax Board of that reduction, unless otherwise
directed for purposes of more effectively administering this article.

   (3) In no event shall the district attorney refer, or the
Franchise Tax Board collect, under this article any delinquency if
both of the following circumstances exist:
   (A) A court has ordered an obligated parent to make scheduled
payments on a child support arrearages obligation.
   (B) The obligated parent is in compliance with the order.
   (4) A child support delinquency need not be referred to the
Franchise Tax Board pursuant to this article if an earnings
assignment order or a notice of assignment has been served on the
obligated parent's employer and court-ordered support is being paid
pursuant to the earnings assignment order or the notice of assignment
or at least 50 percent of the obligated parent's earnings are being
withheld for support.
   (5) A child support delinquency need not be referred to the
Franchise Tax Board for collection if a jurisdiction outside this
state is enforcing the support order.
   (f) Except as otherwise provided in this article, any child
support delinquency referred to the Franchise Tax Board pursuant to
this article shall be treated as a child support delinquency for all
other purposes, and any collection action by the county district
attorney or the Franchise Tax Board with respect to any delinquency
referred pursuant to this article shall have the same priority
against attachment, execution, assignment, or other collection action
as is provided by any other provision of state law.
   (g) Except as otherwise specifically provided in subparagraph (B)
of paragraph (1) of subdivision (b), the child support collection
activities authorized by this article shall not interfere with the
primary mission of the Franchise Tax Board to fairly and efficiently
administer the provisions of this code for which it is responsible.
   (h) Information disclosed to the Franchise Tax Board shall be
considered information that may be disclosed by the Franchise Tax
Board under the authority of Section 19548 and may be disseminated by
the Franchise Tax Board accordingly for the purposes specified in
Sections 11478 and 11478.5 of the Welfare and Institutions Code (in
accordance with, and to the extent permitted by, Section 11478.1 of
the Welfare and Institutions Code and any other state or federal
law).
   (i) A county may apply to the State Department of Social Services
for an exemption from subdivision (a).  The State Department of
Social Services shall grant an exemption only if the county has a
program for collecting delinquent child support, including hardware
and software, that is similar or identical to the technology used by
the Franchise Tax Board in implementing its child support collections
program and the county program was in operation as of April 1, 1997.

  SEC. 178.  Section 23038.5 of the Revenue and Taxation Code is
amended to read:
   23038.5.  (a) Section 7704 of the Internal Revenue Code, relating
to certain publicly traded partnerships treated as corporations,
shall apply, except as otherwise provided.
   (b) (1) Section 7704(a) of the Internal Revenue Code shall not
apply to an electing 1987 partnership.
   (2) For purposes of this subdivision, the term "electing 1987
partnership" means any publicly traded partnership if all of the
following apply:
   (A) The partnership is an existing partnership (as defined in
Section 10211(c)(2) of the Revenue Reconciliation Act of 1987).
   (B) Section 7704(a) of the Internal Revenue Code has not applied
(and without regard to Section 7704(c)(1) of the Internal Revenue
Code would not have applied) to that partnership for all prior
taxable years beginning after December 31, 1987, and before January
1, 1998.
   (C) (i) The partnership has made the election under Section 7704
(g)(1)(C) of the Internal Revenue Code (as added by Public Law
105-34) for federal tax purposes.
   (ii) The election for federal tax purposes described in clause (i)
shall be treated as a binding election and a separate election for
state tax purposes shall not be allowed under paragraph (3) of
subdivision (e) of Section 23051.5.
   (iii) The election for federal tax purposes described in clause
(i) shall be treated as a binding consent to the application of the
tax imposed under paragraph (3) and a separate election for state tax
purposes shall not be allowed under paragraph (3) of subdivision (e)
of Section 23051.5.
   (D) A partnership which, but for this subparagraph, would be
treated as an electing 1987 partnership shall cease to be so treated
(and the election under subparagraph (C) shall cease to be in effect)
as of the first day after December 31, 1997, that the partnership is
no longer treated as an electing 1987 partnership for federal tax
purposes (and the election under Section 7704(g)(1)(C) of the
Internal Revenue Code (as added by Public Law 105-34) ceases to be in
effect for federal tax purposes).
   (3) (A) There is hereby imposed for each taxable year beginning on
or after January 1, 1998, on the gross income of each electing 1987
partnership a tax equal to 1 percent of that partnership's gross
income from all sources reportable to this state, taking into account
Section 25101 and any election under Section 25110, attributable to
the active conduct of trades and businesses by the partnership.
   (B) The tax shall be due and payable on the date the return of the
partnership is required to be filed under Section 18633, shall be
collected and refunded in the same manner as other taxes imposed by
this part, and shall be subject to interest and applicable penalties.

   (C) For purposes of this paragraph, if a partnership is a partner
in another partnership, the gross income referred to in subparagraph
(A) shall include the partnership's distributive share of the gross
income of the other partnership from all sources reportable to this
state, taking into account Section 25101 and any election under
Section 25110, attributable to the active conduct of trades and
businesses of that other partnership.  A similar rule shall apply in
the case of lower-tiered partnerships.
   (D) The tax imposed by this paragraph shall be treated as imposed
by this part other than for purposes of determining the amount of any
credit allowable under this part.
   (4) The provisions of this subdivision shall apply to the taxable
year for which the election described in clause (i) of subparagraph
(C) of paragraph (2) is made for federal purposes and all subsequent
taxable years unless revoked by the partnership for federal purposes.
  Any revocation made for federal purposes shall be treated as a
binding revocation under this part, but, once so revoked, may not be
reinstated and a separate revocation for state purposes shall not be
allowed under paragraph (3) of subdivision (e) of Section 23051.5.
   (c) The amendment made to this section by the act adding this
subdivision shall apply to taxable years beginning on or after
January 1, 1998.
  SEC. 179.  Section 23610.5 of the Revenue and Taxation Code is
amended to read:
   23610.5.  (a) (1) There shall be allowed as a credit against the
"tax" (as defined by Section 23036) a state low-income housing tax
credit in an amount equal to the amount determined in subdivision
(c), computed in accordance with Section 42 of the Internal Revenue
Code of 1986, except as otherwise provided in this section.
   (2) "Taxpayer," for purposes of this section, means the sole owner
in the case of a C corporation, the partners in the case of a
partnership, and the shareholders in the case of an S corporation.
   (3) "Housing sponsor," for purposes of this section, means the
sole owner in the case of a C corporation, the partnership in the
case of a partnership, and the S corporation in the case of an S
corporation.
   (b) (1) The amount of the credit allocated to any housing sponsor
shall be authorized by the California Tax Credit Allocation
Committee, or any successor thereof, based on a project's need for
the credit for economic feasibility in accordance with the
requirements of this section.
   (A) The low-income housing project shall be located in California
and shall meet either of the following requirements:
   (i) The project's housing sponsor has been allocated by the
California Tax Credit Allocation Committee a credit for federal
income tax purposes under Section 42 of the Internal Revenue Code.
   (ii) It qualifies for a credit under Section 42(h)(4)(B) of the
Internal Revenue Code.
   (B) The California Tax Credit Allocation Committee shall not
require fees for the credit under this section in addition to those
fees required for applications for the tax credit pursuant to Section
42 of the Internal Revenue Code.  The committee may require a fee if
the application for the credit under this section is submitted in a
calendar year after the year the application is submitted for the
federal tax credit.
   (2) (A) The California Tax Credit Allocation Committee shall
certify to the housing sponsor the amount of tax credit under this
section allocated to the housing sponsor for each credit period.
   (B) In the case of a partnership or an S corporation, the housing
sponsor shall provide a copy of the California Tax Credit Allocation
Committee certification to the taxpayer.
   (C) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board.
   (D) All elections made by the taxpayer pursuant to Section 42 of
the Internal Revenue Code shall apply to this section.
   (E) For buildings located in designated difficult development
areas or qualified census tracts as defined in Section 42(d)(5)(C) of
the Internal Revenue Code, credits may be allocated under this
section in the amounts prescribed in subdivision (c), provided that
the amount of credit allocated under Section 42 of the Internal
Revenue Code is computed on 100 percent of the qualified basis of the
building.
   (c) Section 42(b) of the Internal Revenue Code shall be modified
as follows:
   (1) In the case of any qualified low-income building placed in
service by the housing sponsor during 1987, the term "applicable
percentage" means 9 percent for each of the first three years and 3
percent for the fourth year for new buildings (whether or not the
building is federally subsidized) and for existing buildings.
   (2) In the case of any qualified low-income building that receives
an allocation after 1989 and is a new building not federally
subsidized, the term "applicable percentage" means the following:
   (A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are not
federally subsidized for the taxable year, determined in accordance
with the requirements of Section 42(b)(2) of the Internal Revenue
Code, in lieu of the percentage prescribed in Section 42(b)(1)(A).
   (B) For the fourth year, the difference between 30 percent and the
sum of the applicable percentages for the first three years.
   (3) In the case of any qualified low-income building that receives
an allocation after 1989 and that is a new building that is
federally subsidized or that is an existing building that is "at risk
of conversion," the term "applicable percentage" means the
following:
   (A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are federally
subsidized for the taxable year.
   (B) For the fourth year, the difference between 13 percent and the
sum of the applicable percentages for the first three years.
   (4) For purposes of this section, the term "at risk of conversion,"
with respect to an existing building means a building that satisfies
all of the following criteria:
   (A) The building is presently owned by a housing sponsor other
than a qualified nonprofit organization.
   (B) The building is a federally assisted building for which the
low-income use restrictions will terminate or the building is
eligible for prepayment under Subtitle 13 of the Emergency Low Income
Housing Assistance Act of 1987 or under Section 502(c) of the
Housing Act of 1949, anytime in the two calendar years after the year
of application to the California Tax Credit Allocation Committee,
and the purchaser has received preliminary approval from the
applicable federal agency for a maximum level of incentives through a
plan of action.
   (C) The person acquiring the building enters into a regulatory
agreement that requires the building to be operated in accordance
with the requirements of this section for a period equal to the
greater of 55 years or the life of the building.
   (D) The building satisfies the requirements of Section 42(e) of
the Internal Revenue Code regarding rehabilitation expenditures,
except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
apply.
   (d) The term "qualified low-income housing project" as defined in
Section 42(c)(2) of the Internal Revenue Code is modified by adding
the following requirements:
   (1) The taxpayer shall be entitled to receive a cash distribution
from the operations of the project, after funding required reserves,
which, at the election of the taxpayer, shall be equal to:
   (A) An amount not to exceed 8 percent of the lesser of:
   (i) The owner equity, which shall include the amount of the
capital contributions actually paid to the housing sponsor and shall
not include any amounts until they are paid on an investor note, or
   (ii) Twenty percent of the adjusted basis of the building as of
the close of the first income year of the credit period; or
   (B) The amount of the cash-flow from those units in the building
that are not low-income units.  For purposes of computing cash-flow
under this subparagraph, operating costs shall be allocated to the
low-income units using the "floor space fraction," as defined in
Section 42 of the Internal Revenue Code.
   (C) Any amount allowed to be distributed under subparagraph (A)
that is not available for distribution during the first five years of
the compliance period may accumulate and be distributed at any time
during the first 15 years of the compliance period
                        but not thereafter.
   (2) The limitation on return shall apply in the aggregate to the
partners if the housing sponsor is a partnership and in the aggregate
to the shareholders if the housing sponsor is an S corporation.
   (3) The housing sponsor shall apply any cash available for
distribution in excess of the amount eligible to be distributed under
paragraph (1) to reduce the rent on rent-restricted units or to
increase the number of rent-restricted units subject to the tests of
Section 42(g)(1) of the Internal Revenue Code.
   (e) The provisions of Section 42(f) of the Internal Revenue Code
shall be modified as follows:
   (1) The term "credit period" as defined in Section 42(f)(1) of the
Internal Revenue Code is modified by substituting "four income years"
for "10 taxable years."
   (2) The special rule for the first taxable year of the credit
period under Section 42(f)(2) of the Internal Revenue Code shall not
apply to the tax credit under this section.
   (3) Section 42(f)(3) of the Internal Revenue Code is modified to
read:
   If, as of the close of any income year in the compliance period,
after the first year of the credit period, the qualified basis of any
building exceeds the qualified basis of that building as of the
close of the first year of the credit period, the housing sponsor, to
the extent of its tax credit allocation, shall be eligible for a
credit on the excess in an amount equal to the applicable percentage
determined pursuant to subdivision (c) for the four-year period
beginning with the later of the income years in which the increase in
qualified basis occurs.
   (f) The provisions of Section 42(h) of the Internal Revenue Code
shall be modified as follows:
   (1) Section 42(h)(2) of the Internal Revenue Code shall not be
applicable and instead the following provisions shall be applicable:

   The total amount for the four-year credit period of the housing
credit dollars allocated in a calendar year to any building shall
reduce the aggregate housing credit dollar amount of the California
Tax Credit Allocation Committee for the calendar year in which the
allocation is made.
   (2) Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)
(I), (7), and (8) of Section 42(h) of the Internal Revenue Code shall
not be applicable.
   (g) The aggregate housing credit dollar amount that may be
allocated annually by the California Tax Credit Allocation Committee
pursuant to this section, Section 12206, and Section 17058 shall be
an amount equal to the sum of the following:
   (1) (A) Except as provided in subparagraph (B), thirty-five
million dollars ($35,000,000) for the 1997 calendar year, and each
calendar year thereafter, or
   (B) Fifty million dollars ($50,000,000) for each of the calendar
years 1998 and 1999 ; and
   (2) The unused housing credit ceiling, if any, for the preceding
calendar years; and
   (3) The amount of housing credit ceiling returned in the calendar
year.  For purposes of this paragraph, the amount of housing credit
dollar amount returned in the calendar year equals the housing credit
dollar amount previously allocated to any project that does not
become a qualified low-income housing project within the period
required by this section or to any project with respect to which an
allocation is canceled by mutual consent of the California Tax Credit
Allocation Committee and the allocation recipient.
   (h) The term "compliance period" as defined in Section 42(i)(1) of
the Internal Revenue Code is modified to mean, with respect to any
building, the period of 30 consecutive income years beginning with
the first income year of the credit period with respect thereto.
   (i) Section 42(j) of the Internal Revenue Code shall not be
applicable and the following shall be substituted in its place:
   The requirements of this section shall be set forth in a
regulatory agreement between the California Tax Credit Allocation
Committee and the housing sponsor, and this agreement shall be
subordinated, when required, to any lien or encumbrance of any banks
or other institutional lenders to the project.  The regulatory
agreement entered into pursuant to subdivision (f) of Section
50199.14 of the Health and Safety Code shall apply, provided that the
agreement includes all of the following provisions:
   (1) A term not less than the compliance period.
   (2) A requirement that the agreement be filed in the official
records of the county in which the qualified low-income housing
project is located.
   (3) A provision stating which state and local agencies can enforce
the regulatory agreement in the event the housing sponsor fails to
satisfy any of the requirements of this section.
   (4) A provision that the regulatory agreement shall be deemed a
contract enforceable by tenants as third-party beneficiaries thereto,
and that allows individuals, whether prospective, present, or former
occupants of the building, who meet the income limitation applicable
to the building the right to enforce the regulatory agreement in any
state court.
   (5) A provision incorporating the requirements of Section 42 of
the Internal Revenue Code as modified by this section.
   (6) A requirement that the housing sponsor notify the California
Tax Credit Allocation Committee or its designee if there is a
determination by the Internal Revenue Service that the project is not
in compliance with Section 42(g) of the Internal Revenue Code.
   (7) A requirement that the housing sponsor, as security for the
performance of the housing sponsor's obligations under the regulatory
agreement, assign the housing sponsor's interest in rents that it
receives from the project, provided that until there is a default
under the regulatory agreement, the housing sponsor is entitled to
collect and retain the rents.
   (8) A provision that the remedies available in the event of a
default under the regulatory agreement that is not cured within a
reasonable cure period include, but are not limited to, allowing any
of the parties designated to enforce the regulatory agreement to
collect all rents with respect to the project; taking possession of
the project and operating the project in accordance with the
regulatory agreement until the enforcer determines the housing
sponsor is in a position to operate the project in accordance with
the regulatory agreement; applying to any court for specific
performance; securing the appointment of a receiver to operate the
project; or any other relief as may be appropriate.
   (j) (1) The committee shall allocate the housing credit on a
regular basis consisting of two or more periods in each calendar year
during which applications may be filed and considered.  The
committee shall establish application filing deadlines, the maximum
percentage of federal and state low-income housing tax credit ceiling
that may be allocated by the committee in that period, and the
approximate date on which allocations shall be made.  If the
enactment of federal or state law, the adoption of rules or
regulations, or other similar events prevent the use of two
allocation periods, the committee may reduce the number of periods
and adjust the filing deadlines, maximum percentage of credit
allocated, and allocation dates.
   (2) The committee shall adopt a qualified allocation plan, as
provided in Section 42(m)(1) of the Internal Revenue Code.  In
adopting this plan, the committee shall comply with the provisions of
Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code.
   (3) Notwithstanding Section 42(m) of the Internal Revenue Code,
the California Tax Credit Allocation Committee shall allocate housing
credits in accordance with the qualified allocation plan and
regulations, which shall include the following provisions:
   (A) All housing sponsors, as defined by paragraph (3) of
subdivision (a), shall demonstrate at the time the application is
filed with the committee that the project meets the following
threshold requirements:
   (i) The housing sponsor shall demonstrate that there is a need for
low-income housing in the community or region for which it is
proposed.
   (ii) The project's proposed financing, including tax credit
proceeds, shall be sufficient to complete the project and shall be
adequate to operate the project for the extended use period.
   (iii) The project shall have enforceable financing commitments,
either construction or permanent financing, for at least 50 percent
of the total estimated financing of the project.
   (iv) The housing sponsor shall have and maintain control of the
site for the project.
   (v) The housing sponsor shall demonstrate that the project
complies with all applicable local land use and zoning ordinances.
   (vi) The housing sponsor shall demonstrate that the project
development team has the experience and the financial capacity to
ensure project completion and operation for the extended use period.

   (vii) The housing sponsor shall demonstrate the amount of tax
credit that is necessary for the financial feasibility of the project
and its viability as a qualified low-income housing project
throughout the extended use period, taking into account operating
expenses, a supportable debt service, reserves, funds set aside for
rental subsidies, and required equity, and a development fee that
does not exceed a specified percentage of the eligible basis of the
project prior to inclusion of the development fee in the eligible
basis, as determined by the committee.
   (B) The committee shall give a preference to those projects
satisfying all of the threshold requirements of subparagraph (A) if:

   (i) The project serves the lowest income tenants at rents
affordable to those tenants; and
   (ii) The project is obligated to serve qualified tenants for the
longest period.
   (C) In addition to the provisions of subparagraphs (A) and (B),
the committee shall use the following criteria in allocating housing
credits:
   (i) Projects serving large families in which a substantial number,
as defined by the committee, of all residential units are low-income
units with three and more bedrooms.
   (ii) Projects providing single-room occupancy units serving very
low income tenants.
   (iii) Existing projects that are "at risk of conversion," as
defined by paragraph (4) of subdivision (c).
   (iv) Projects for which a public agency provides direct or
indirect long-term financial support for at least 15 percent of the
total project development costs or projects for which the owner's
equity constitutes at least 30 percent of the total project
development costs.
   (v) Projects that provide tenant amenities not generally available
to residents of low-income housing projects.
   (4) For purposes of allocating credits pursuant to this section,
the committee shall not give preference to any project by virtue of
the date of submission of its application except to break a tie when
two or more of the projects have an equal rating.
   (5) Not less than 20 percent of the low-income housing tax credits
available annually under this section, Section 12206, and Section
17058 shall be set aside for allocation to rural areas as defined in
Section 50199.21 of the Health and Safety Code.  Any amount of credit
set aside for rural areas remaining on or after October 31 of any
calendar year shall be available for allocation to any eligible
project.  No amount of credit set aside for rural areas shall be
considered available for any eligible project so long as there are
eligible rural applications pending on October 31.
   (k) Section 42(l) of the Internal Revenue Code shall be modified
as follows:
   The term "secretary" shall be replaced by the term "California
Franchise Tax Board."
   (l) In the case where the state credit allowed under this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding years if necessary, until the
credit has been exhausted.
   (m) A project that received an allocation of a 1989 federal
housing credit dollar amount shall be eligible to receive an
allocation of a 1990 state housing credit dollar amount, subject to
all of the following conditions:
   (1) The project was not placed in service prior to 1990.
   (2) To the extent the amendments made to this section by the
Statutes of 1990 conflict with any provisions existing in this
section prior to those amendments, the prior provisions of law shall
prevail.
   (3) Notwithstanding paragraph (2), a project applying for an
allocation under this subdivision shall be subject to the
requirements of paragraph (3) of subdivision (j).
   (n) The credit period with respect to an allocation of credit in
1989 by the California Tax Credit Allocation Committee of which any
amount is attributable to unallocated credit from 1987 or 1988 shall
not begin until after December 31, 1989.
   (o) The provisions of Section 11407(a) of Public Law 101-508,
relating to the effective date of the extension of the low-income
housing credit, shall apply to calendar years after 1989.
   (p) The provisions of Section 11407(c) of Public Law 101-508,
relating to election to accelerate credit, shall not apply.
   (q) (1) A corporation may elect to assign any portion of any
credit allowed under this section to one or more affiliated
corporations for each income year in which the credit is allowed.
For purposes of this subdivision, "affiliated corporation" has the
meaning provided in subdivision (b) of Section 25110, as that section
was amended by Chapter 881 of the Statutes of 1993, as of the last
day of the income year in which the credit is allowed, except that
"100 percent" is substituted for "more than 50 percent" wherever it
appears in the section, as that section was amended by Chapter 881 of
the Statutes of 1993, and "voting common stock" is substituted for
"voting stock" wherever it appears in the section, as that section
was amended by Chapter 881 of the Statutes of 1993.
   (2) The election provided in paragraph (1):
   (A) May be based on any method selected by the corporation that
originally receives the credit.
   (B) Shall be irrevocable for the income year the credit is
allowed, once made.
   (C) May be changed for any subsequent income year if the election
to make the assignment is expressly shown on each of the returns of
the affiliated corporations that assign and receive the credits.
   (r) Any unused credit may continue to be carried forward, as
provided in subdivision (k), until the credit has been exhausted.
   This section shall remain in effect on or after December 1, 1990,
for as long as Section 42 of the Internal Revenue Code, pertaining to
low-income housing credits, remains in effect.
   (s) The amendments to this section made by the act adding this
subdivision shall apply only to income years beginning on or after
January 1, 1994, except that paragraph (1) of subdivision (q), as
amended, shall apply to income years beginning on or after January 1,
1993.
  SEC. 180.  Section 23701t of the Revenue and Taxation Code is
amended to read:
   23701t.  (a) A homeowners' association organized and operated to
provide for the acquisition, construction, management, maintenance,
and care of residential association property if all of the following
apply:
   (1) Sixty percent or more of the gross income of the organization
for the taxable year consists solely of amounts received as
membership dues, fees, and assessments from either of the following:

   (A) Tenant-stockholders or owners of residential units,
residences, or lots.
   (B) Owners of timeshare rights to use, or timeshare ownership
interests in, association property in the case of a timeshare
association.
   (2) Ninety percent or more of the expenditures of the organization
for the taxable year are expenditures for the acquisition,
construction, management, maintenance, and care of association
property and, in the case of a timeshare association, for activities
provided to or on behalf of members of the association.
   (3) No part of the net earnings inures (other than by providing
management, maintenance, and care of association property or by a
rebate of excess membership dues, fees, or assessments) to the
benefit of any private shareholder or individual.
   (4) Amounts received as membership dues, fees, and assessments not
expended for association purposes during the taxable year are
transferred to and held in trust to provide for the management,
maintenance, and care of association property and common areas.
   (b) The term "association property" means:
   (1) Property held by the organization.
   (2) Property held in common by the members of the organization.
   (3) Property within the organization privately held by the members
of the organization.
   In the case of a timeshare association, "association property"
includes property in which the timeshare association, or members of
the association, have rights arising out of recorded easements,
covenants, or other recorded instruments to use property related to
the timeshare project.
   (c) A homeowners' association shall be subject to tax under this
part with respect to its "homeowners' association taxable income,"
and that income shall be subject to tax as provided by Chapter 3
(commencing with Section 23501) of this part.
   (1) For purposes of this section, the term "homeowners'
association taxable income" of any organization for any taxable year
means an amount equal to the excess over one hundred dollars ($100)
(if any) of--
   (A) The gross income for the taxable year (excluding any exempt
function income), over
   (B) The deductions allowed by this part which are directly
connected with the production of the gross income (excluding exempt
function income).
   (2) For purposes of this section, the term "exempt function income"
means any amount received as membership fees, dues, and assessments
from tenant-shareholders or owners of residential units, residences,
or lots, or owners of timeshare rights to use, or timeshare ownership
interests in, association property in the case of a timeshare
association.
   (d) The term "homeowners' association" includes a condominium
management association, a residential real estate management
association, a timeshare association, and a cooperative housing
corporation.
   (e) "Cooperative housing corporation" includes, but is not limited
to, a limited-equity housing cooperative, as defined in Section
33007.5 of the Health and Safety Code, organized either as a
nonprofit public benefit corporation pursuant to Part 2 (commencing
with Section 5110) of Division 2 of Title 1 of the Corporations Code,
or a nonprofit mutual benefit corporation pursuant to Part 3
(commencing with Section 7110) of Division 2 of Title 1 of the
Corporations Code.
   (f) The term "timeshare association" means any organization (other
than a condominium management association) organized and operated to
provide for the acquisition, construction, management, maintenance,
and care of association property if any member thereof holds a
timeshare right to use, or a timeshare ownership interest in, real
property constituting association property.
   (g) The amendments made to this section by the act adding this
subdivision shall apply to taxable years beginning on or after
January 1, 1998.
  SEC. 181.  Section 23704 of the Revenue and Taxation Code is
amended to read:
   23704.  For purposes of this part, an organization shall be
treated as an organization organized and operated exclusively for
charitable purposes, if:
   (a) The organization is organized and operated solely:
   (1) To perform, on a centralized basis, one or more of the
following services which, if performed on its own behalf by a
hospital that is an organization described in Section 23701d and
exempt from taxation under Section 23701, would constitute activities
in exercising or performing the purpose or function constituting the
basis for its exemption:  data processing, purchasing (including the
purchasing of insurance on a group basis), warehousing, billing and
collection (including the purchase of patron accounts receivable on a
recourse basis), food, clinical, industrial engineering, laboratory,
laundry, printing, communications, record center, and personnel
(including selection, testing, training, and education of personnel)
services; and
   (2) To perform those services solely for two or more hospitals,
and for no other individuals or organizations, each of which is:
   (A) An organization described in Section 23701d that is exempt
from taxation under Section 23701, or
   (B) A constituent part of an organization described in Section
23701d that is exempt from taxation under Section 23701 and that, if
organized and operated as a separate entity, would constitute an
organization described in Section 23701d, or
   (C) Owned and operated by the United States, the state, a county,
or political subdivision, or an agency or instrumentality of any of
the foregoing.
   (b) The organization is organized and operated on a cooperative
basis and allocates or pays, within 81/2 months after the close of
its income year, all net earnings to members on the basis of services
performed for them.
   (c) If the organization has capital stock, all of that stock
outstanding is owned by its members.
   For purposes of this part, any organization that, by reason of the
preceding sentence, is an organization described in Section 23701d
and exempt from taxation under Section 23701, shall be treated as a
hospital and as an organization referred to in Section 23736(e).
  SEC. 182.  Section 24416.2 of the Revenue and Taxation Code is
amended to read:
   24416.2.  (a) The term "qualified taxpayer" as used in Section
24416.1 includes a corporation engaged in the conduct of a trade or
business within an enterprise zone designated pursuant to Chapter
12.8 (commencing with Section 7070) of Division 7 of Title 1 of the
Government Code.  For purposes of this subdivision, all of the
following shall apply:
   (1) A net operating loss shall not be a net operating loss
carryback for any income year and a net operating loss for any income
year beginning on or after the date that the area in which the
taxpayer conducts a trade or business is designated as an enterprise
zone shall be a net operating loss carryover to each of the 15 income
years following the income year of loss.
   (2) For purposes of this subdivision:
   (A) "Net operating loss" means the loss determined under Section
172 of the Internal Revenue Code, as modified by Section 24416.1,
attributable to the taxpayer's business activities within the
enterprise zone (as defined in Chapter 12.8 (commencing with Section
7070) of Division 7 of Title 1 of the Government Code) prior to the
enterprise zone expiration date.  That attributable loss shall be
determined in accordance with Chapter 17 (commencing with Section
25101), modified for purposes of this  subdivision as follows:
   (i) Loss shall be apportioned to the enterprise zone by
multiplying total loss from the business by a fraction, the numerator
of which is the property factor plus the payroll factor, and the
denominator of which is 2.
   (ii) "The enterprise zone" shall be substituted for "this state."
   (B) A net operating loss carryover shall be a deduction only with
respect to the taxpayer's business income attributable to the
enterprise zone as defined in Chapter 12.8 (commencing with Section
7070) of Division 7 of Title 1 of the Government Code.
   (C) Attributable income is that portion of the taxpayer's
California source business income that is apportioned to the
enterprise zone.  For that purpose, the taxpayer's business income
attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101).  That
business income shall be further apportioned to the enterprise zone
in accordance with Article 2 (commencing with Section 25120) of
Chapter 17, modified for purposes of this  subdivision as follows:
   (i) Business income shall be apportioned to the enterprise zone by
multiplying the total California business income of the taxpayer by
a fraction, the numerator of which is the property factor plus the
payroll factor, and the denominator of which is 2.  For purposes of
this clause:
   (I) The property factor is a fraction, the numerator of which is
the average value of the taxpayer's real and tangible personal
property owned or rented and used in the enterprise zone during the
income year, and the denominator of which is the average value of all
the taxpayer's real and tangible personal property owned or rented
and used in this state during the income year.
   (II) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the enterprise zone during
the income year for compensation, and the denominator of which is the
total compensation paid by the taxpayer in this state during the
income year.
   (ii) If a loss carryover is allowable pursuant to this section for
any income year after the enterprise zone designation has expired,
the enterprise zone shall be deemed to remain in existence for
purposes of computing the limitation set forth in subparagraph (B)
and allowing a net operating loss deduction.
   (D) "Enterprise zone expiration date" means the date the
enterprise zone designation expires, is no longer binding, or becomes
inoperative.
   (3) The changes made to this subdivision by the act adding this
paragraph shall apply to income years beginning on or after January
1, 1998.
   (b) A taxpayer who qualifies as a "qualified taxpayer" under one
or more sections shall, for the income year of the net operating loss
and any income year to which that net operating loss may be carried,
designate on the original return filed for each year the section
that applies to that taxpayer with respect to that net operating
loss.  If the taxpayer is eligible to qualify under more than one
section, the designation is to be made after taking into account
subdivision (c).
   (c) If a taxpayer is eligible to qualify under this section and
either Section 24416.4, 24416.5, or 24416.6 as a "qualified taxpayer,"
with respect to a net operating loss in an income year, the taxpayer
shall designate which section is to apply to the taxpayer.
   (d) Notwithstanding Section 24416, the amount of the loss
determined under this section shall be the only net operating loss
allowed to be carried over from that income year, and the designation
under subdivision (b) shall be included in the election under
Section 24416.1.
  SEC. 183.  Section 41136 of the Revenue and Taxation Code is
amended to read:

41136.  Funds in the State Emergency Telephone Number Account shall,
when appropriated by the Legislature, be spent solely for the
following purposes:
   (a) To pay refunds authorized by this part.
   (b) To pay the State Board of Equalization for the cost of the
administration of this part.
   (c) To pay the Department of General Services for its costs in
administration of the "911" emergency telephone number system.
   (d) To pay bills submitted to the Department of General Services
by service suppliers or communications equipment companies for the
installation of, and ongoing expenses for, the following
communications services supplied to local agencies in connection with
the "911" emergency phone number system:
   (1) A basic system.
   (2) A basic system with telephone central office identification.
   (3) A system employing automatic call routing.
   (4) Approved incremental costs.
   (e) To pay claims of local agencies for approved incremental
costs, not previously compensated for by another governmental agency.

   (f) To pay claims of local agencies for incremental costs and
amounts, not previously compensated for by another governmental
agency, incurred prior to the effective date of this part, for the
installation and ongoing expenses for the following communication
services supplied in connection with the "911" emergency phone number
system:
   (1) A basic system.
   (2) A basic system with telephone central office identification.
   (3) A system employing automatic call routing.
   (4) Approved incremental costs.  Incremental costs shall not be
allowed unless the costs are concurred in by the Division of
Telecommunications of the Department of General Services.
   (g) To pay the Division of Telecommunications of the Department of
General Services for the costs associated with the pilot program
authorized by Article 6.5 (commencing with Section 53125) of Chapter
1 of Part 1 of Division 2 of Title 5 of the Government Code.
  SEC. 184.  Section 65004 of the Revenue and Taxation Code is
amended to read:
   65004.  (a) Except as provided in subdivision (b), no city,
county, or city and county may impose, assess, or attempt to collect
any of the following:
   (1) A tax on Internet access, Online Computer Services, or the use
of Internet access or any Online Computer Services.
   (2) A bit tax or bandwidth tax.
   (3) Any discriminatory tax on Online Computer Services or Internet
access.
   (b) The prohibition in subdivision (a) against the imposition of
taxes shall not apply to any new or existing tax of general
application, including, but not limited to, any sales and use tax,
business license tax, or utility user tax that is imposed or assessed
in a uniform and nondiscriminatory manner without regard to whether
the activities or transactions taxed are conducted through the use of
the Internet, Internet access, or Online Computer Services.
   (c) A cable television franchise fee may not be imposed on Online
Computer Services or Internet access delivered over a cable
television system if the Federal Communications Commission, by
issuing final order, or a court of competent jurisdiction, by
rendering a judgment enforceable in California, finds that those are
not cable services as defined in Section 522(6) of Title 47 of the
United States Code and are, therefore, not subject to a franchise
fee.  However, if that final order or judgment is overturned or
modified by further administrative, legislative, or judicial action,
that action shall control.  The operation of this subdivision may be
suspended by contract between a cable television franchising
authority and a cable television operator.
   (d) This part shall become inoperative three years from the
effective date of the act adding this part.
  SEC. 185.  Section 1095 of the Unemployment Insurance Code is
amended to read:
   1095.  The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
   (a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
   (b) To properly present a claim for benefits.
   (c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
   (d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
   (e) To enable an employer to receive a reduction in contribution
rate.
   (f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
   (g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
   (h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
   (i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence.  The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records.  Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
   (1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
   (2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
   (3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.
   (4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
   (j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system.  The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system.  The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
   (k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
   (l) To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under
Title IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
   (m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the victims of crime program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
   (n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
   (1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
   (2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies.  The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
   (o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation.  The information shall be
provided to the extent permitted by federal law and regulations.
For the purposes of this subdivision, "authorized governmental agency"
means the district attorney of any county, the office of the
Attorney General, the Department of Industrial Relations, and the
Department of Insurance.  An authorized governmental agency may
disclose this information to the State Bar, the Medical Board of
California, or any other licensing board or department whose licensee
is the subject of a workers' compensation insurance fraud
investigation.  This subdivision shall not prevent any authorized
governmental agency from reporting to any board or department the
suspected misconduct of any licensee of that body.
   (p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
   (q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists.  For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department.  Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents.  Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
   (r) To enable city and county planning agencies to develop
economic forecasts for planning purposes.  The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
   (s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
   (t) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.
   (u) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included penalties
under Section 1128 or 1128.1 shall not be in violation of Section
1094 if the assessment is final.  The disclosure may also include any
of the following:
   (1) The total amount of the assessment.
   (2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
   (3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
  SEC. 186.  Section 2478 of the Vehicle Code is amended to read:
   2478.  (a) Any person who is found guilty of violating Section
2470, 2472, 2474, or 2476, or the rules and regulations promulgated
under those provisions, is subject to imprisonment in the county jail
for not more than one year, or a fine of not more than one thousand
dollars ($1,000), or both that imprisonment and fine.
   (b) If the conviction is a second or subsequent conviction of a
violation described in subdivision (a), or the violation is committed
with intent to defraud or mislead, the person is subject to
imprisonment in the state prison, or a fine of not more than ten
thousand dollars ($10,000), or both that imprisonment and fine.
  SEC. 187.  Section 2810 of the Vehicle Code is amended to read:
   2810.  (a) A member of the California Highway Patrol may stop any
vehicle transporting any timber products, livestock, poultry, farm
produce, crude oil, petroleum products, or inedible kitchen grease,
and inspect the bills of lading, shipping or delivery papers, or
other evidence to determine whether the driver is in legal possession
of the load, and, upon reasonable belief that the driver of the
vehicle is not in legal possession, shall take custody of the vehicle
and load and turn them over to the custody of the sheriff of the
county in which the timber products, livestock, poultry, farm
produce, crude oil, petroleum products, or inedible kitchen grease,
or any part thereof, is apprehended.
   (b) The sheriff shall receive and provide for the care and
safekeeping of the apprehended timber products, livestock, poultry,
farm produce, crude oil, petroleum products, or inedible kitchen
grease, or any part thereof, and immediately, in cooperation with the
department, proceed with an investigation and its legal disposition.

   (c) Any expense incurred by the sheriff in the performance of his
or her duties under this section shall be a legal charge against the
county.
  SEC. 188.  Section 4466 of the Vehicle Code is amended to read:
   4466.  (a) The department shall not issue a copy, duplication, or
substitution of a certificate of ownership or license plate if, after
a search of the records of the department, the registered owner's
address, as submitted with the application for that document, is
different from that which appears in the records of the department,
unless the registered owner applies for that document in person and
presents all of the following:
   (1) Proof of ownership of the vehicle that is acceptable to the
department.
   (2) A driver's license or identification card containing a picture
of the licensee or cardholder issued to the registered owner by the
department pursuant to Chapter 1 (commencing with Section 12500) of
Division 6.  The department shall conduct a search of its records to
verify the authenticity of any document submitted under this
paragraph.
   (3) If the application is for the purpose of replacing a
certificate or license plate that was stolen, a copy of a police
report identifying the document as stolen.
   (4) If the application is for the purpose of replacing a
certificate or license plate that was mutilated or destroyed, the
remnants of the mutilated or destroyed document.
   (5) If the department has a record of a prior issuance of a copy,
duplication, or substitution of a certificate or license plate for
the vehicle, a copy of a report from the Department of the California
Highway Patrol verifying the vehicle identification number of the
vehicle.
   (b) Subdivision (a) does not apply if the registered owner's name
and driver's license or identification card number submitted on the
application match the name and driver's license or identification
card number contained in the department's registration record for
that vehicle, or if an application is submitted by or through a
dealer, a dismantler, an insurer, an agent of the insurer, or a
salvage pool.
  SEC. 189.  Section 11614 of the Vehicle Code is amended to read:
   11614.  No lessor-retailer licensed under this chapter shall do
any of the following in connection with any activity for which this
license is required:
   (a) Make or disseminate, or cause to be made or disseminated,
before the public in this state, in any newspaper or other
publication, or any advertising device, or by oral representation, or
in any other manner or means whatever, any statement that is untrue
or misleading and that is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading; or make
or disseminate, or cause to be made or disseminated, any statement as
part of a plan or scheme with the intent not to sell any vehicle, or
service so advertised, at the price stated therein, or as so
advertised.
   (b) Advertise, or offer for sale in any manner, any vehicle not
actually for sale at the premises of the lessor-retailer or available
within a reasonable time to the lessor-retailer at the time of the
advertisement or offer.
   (c) Fail within 48 hours to give, in writing, notification to
withdraw any advertisement of a vehicle that has been sold or
withdrawn from sale.
   (d) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (e) Advertise the total price of a vehicle without including all
costs to the purchaser at the time of delivery at the lessor-retailer'
s premises, except sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance fees not
exceeding thirty-five dollars ($35) pursuant to any statute, and any
dealer documentary preparation charge.  The dealer documentary charge
shall not exceed thirty-five dollars ($35).
   (f) Fail to disclose, in the newspaper display advertisement of a
vehicle for sale, that there will be added to the advertised total
price, at the time of sale, charges for sales tax, vehicle
registration fees, the fee charged by the state for the issuance of
any certificate of compliance or noncompliance pursuant to any
statute, finance charges, or any dealer documentary preparation
charge.
   For purposes of this subdivision, "newspaper display advertisement"
means any advertisement in a newspaper that is two or more newspaper
columns in width or one newspaper column in width and more than
seven inches in length.
   (g) Advertise or otherwise represent, or knowingly allow to be
advertised or represented on the lessor-retailer's behalf or at the
lessor-retailer's place of business, that no downpayment is required
in connection with the sale of a vehicle when a downpayment is in
fact required and the buyer is advised or induced to finance the
downpayment by a loan in addition to any other loan financing the
remainder of the purchase price of the vehicle.
   (h) Refuse to sell a vehicle to any person at the advertised total
price, exclusive of sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance pursuant to any
statute, and any dealer documentary preparation charge, which charges
shall not exceed thirty-five dollars ($35) for the documentary
preparation charge and thirty-five dollars ($35) for the certificate
of compliance or noncompliance pursuant to any statute, while the
vehicle remains unsold or unleased, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (i) Engage in the business for which the licensee is licensed
without having in force and effect a bond required by Section 11612.

   (j) Engage in the business for which the lessor-retailer is
licensed without at all times maintaining a principal place of
business and any branch office location required by this chapter.
   (k) Permit the use of the lessor-retailer license, supplies, or
books by any other person for the purpose of permitting that person
to engage in the sale of vehicles required to be registered under
this code, or to permit the use of the lessor-retailer license,
supplies, or books to operate a branch office location to be used by
any other person, if, in either situation, the licensee has no
financial or equitable interest or investment in the vehicles sold
by, or the business of, or branch office location used by, the
person, or has no interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the lessor-retailer license, supplies, or books to engage in the
sale of vehicles.
   (l) Violate any provision of Article 10 (commencing with Section
28050) of Chapter 5 of Division 12.
   (m) Represent the dealer documentary preparation charge, or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (n) Advertise free merchandise, gifts, or services provided by a
lessor-retailer contingent on the purchase of a vehicle.  "Free"
includes merchandise or services offered for sale at a price less
than the lessor-retailer's cost of the merchandise or services.
   (o) Advertise vehicles and related goods or services with the
intent not to supply reasonably expectable demand, unless the
advertisement discloses a limitation of quantity.
   (p) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle.
   (q) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (r) Misrepresent the authority of a representative or agent to
negotiate the final terms of a transaction.
   (s) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 of Title 16 of the Code of Federal Regulations,
as those regulations read on January 1, 1988.
   (t) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (u) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the
lessor-retailer has conducted a recent survey showing that the
lessor-retailer sells its vehicles at lower prices than any other
licensee in its trade area and maintains records to adequately
substantiate the claim.  The substantiating records shall be made
available to the department upon request.
   (v) To display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
  SEC. 190.  Section 40000.15 of the Vehicle Code is amended to read:

   40000.15.  A violation of any of the following provisions shall
constitute a misdemeanor, and not an infraction:
   Sections 23103 and 23104, relating to reckless driving.
   Section 23109, relating to speed contests or exhibitions.
   Subdivision (a) of Section 23110, relating to throwing at
vehicles.
   Section 23152, relating to driving under the influence.
   Subdivision (b) of Section 23222, relating to possession of
marijuana.
   Subdivision (a) or (b) of Section 23224, relating to persons under
21 years of age knowingly driving, or being a passenger in, a motor
vehicle carrying any alcoholic beverage.
   Section 23253, relating to officers on vehicular crossings.
   Section 23332, relating to trespassing.
   Section 24011.3, relating to vehicle bumper strength notices.
   Section 27150.1, relating to sale of exhaust systems.
   Section 27362, relating to child passenger seat restraints.
   Section 28050, relating to true mileage driven.
   Section 28050.5, relating to nonfunctional odometers.
   Section 28051, relating to resetting odometers.
   Section 28051.5, relating to devices to reset odometers.
   Subdivision (d) of Section 28150, relating to possessing four or
more jamming devices.
  SEC. 191.  Section 1062 of the Water Code is amended to read:
   1062.  (a) The Legislature finds and declares as follows:
   (1) The watershed of the San Francisco Bay/Sacramento-San Joaquin
Delta Estuary supplies a large percentage of water used in
California.
                   (2) The State Water Resources Control Board and
the California regional water quality control boards are responsible
for protecting all beneficial uses of those waters.  Beneficial uses
include those defined in subdivision (f) of Section 13050.
   (3) The board is engaged in a hearing process to consider
revisions to the water quality standards contained in the existing
water quality control plan for the Sacramento-San Joaquin Delta and
Suisun Marsh and to consider new standards for San Francisco Bay.
   (4) There is a broad diversity of viewpoints regarding appropriate
water quality standards and priorities with respect to the various
beneficial uses.
   (5) Any new or revised standards and plans that derive from the
hearing process will have a substantial impact on the people of
California, and there is significant public interest in these
deliberations.
   (b) It is the intent of the Legislature that the hearing process
shall provide for the involvement of all those who wish to
participate in these deliberations.  It is further the intent of the
Legislature that members of the general public shall have full access
to the proceedings and to all official records of the hearings.
   (c) The board shall lodge one copy of the transcripts of the
hearings referred to in subdivision (a) for inspection and use by the
general public  at the following locations:  the headquarters of the
State Water Resources Control Board in Sacramento; the headquarters
of the regional water quality control boards in Los Angeles, Fresno,
and San Diego; and the headquarters of the Environmental Protection
Agency in San Francisco.  The transcripts shall be updated on a
timely basis throughout the course of the board's bay-delta hearing
process.  At the conclusion of the hearing process, one transcript
shall be maintained at the headquarters of the board in Sacramento.
   (d) The board shall provide for staff services at the headquarters
of the board in Sacramento and at the headquarters at each of the
regional water quality control boards listed in subdivision (c) to
assist the public in utilizing the transcripts and other documents
and to facilitate participation by interested parties in the hearing
process.
   (e) During the course of the board's bay-delta hearing process,
the board shall provide for public access to an electronic data
retrieval system capable of displaying the text of the hearing
transcript at the following locations:  the headquarters of the board
in Sacramento; the headquarters of the regional water quality
control boards in Oakland, Los Angeles, Fresno, Redding, Riverside,
and San Diego; and the headquarters of the Environmental Protection
Agency in San Francisco.
  SEC. 192.  Section 319 of the Welfare and Institutions Code is
amended to read:
   319.  At the initial petition hearing, the court shall examine the
child's parents, guardians, or other persons having relevant
knowledge and hear the relevant evidence as the child, the child's
parents or guardians, the petitioner, or their counsel desires to
present.  The court may examine the child, as provided in Section
350.
   The social worker shall report to the court on the reasons why the
child has been removed from the parent's custody; the need, if any,
for continued detention; the available services and the referral
methods to those services that could facilitate the return of the
child to the custody of the child's parents or guardians; and whether
there are any relatives who are able and willing to take temporary
custody of the child.  The court shall order the release of the child
from custody unless a prima facie showing has been made that the
child comes within Section 300 and any of the following circumstances
exist:
   (a) There is a substantial danger to the physical health of the
child or the child is suffering severe emotional damage, and there
are no reasonable means by which the child's physical or emotional
health may be protected without removing the child from the parents'
or guardians' physical custody.
   (b) There is substantial evidence that a parent, guardian, or
custodian of the child is likely to flee the jurisdiction of the
court.
   (c) The child has left a placement in which he or she was placed
by the juvenile court.
   (d) The child indicates an unwillingness to return home, if the
child has been physically or sexually abused by a person residing in
the home.
   The court shall also make a determination on the record as to
whether reasonable efforts were made to prevent or eliminate the need
for removal of the child from his or her home, pursuant to
subdivision (b) of Section 306, and whether there are available
services that would prevent the need for further detention.  Services
to be considered for purposes of making this determination are case
management, counseling, emergency shelter care, emergency in-home
caretakers, out-of-home respite care, teaching and demonstrating
homemakers, parenting training, transportation, and any other child
welfare services authorized by the State Department of Social
Services pursuant to Chapter 5 (commencing with Section 16500) of
Part 4 of Division 9.  The court shall also review whether the social
worker has considered whether a referral to public assistance
services pursuant to Chapter 2 (commencing with Section 11200) and
Chapter 7 (commencing with Section 14000) of Part 3, Chapter 1
(commencing with Section 17000) of Part 5, and Chapter 10 (commencing
with Section 18900) of Part 6 of Division 9 would have eliminated
the need to take temporary custody of the child or would prevent the
need for further detention.  If the child can be returned to the
custody of his or her parent or guardian through the provision of
those services, the court shall place the child with his or her
parent or guardian and order that the services shall be provided.  If
the child cannot be returned to the custody of his or her parent or
guardian, the court shall determine if there is a relative who is
able and willing to care for the child.  Where the first contact with
the family has occurred during an emergency situation in which the
child could not safely remain at home, even with reasonable services
being provided, the court shall make a finding that the lack of
preplacement preventive efforts was reasonable.  Whenever a court
orders a child detained, the court shall state the facts on which the
decision is based, shall specify why the initial removal was
necessary, and shall order services to be provided as soon as
possible to reunify the child and his or her family if appropriate.
   When the child is not released from custody, the court may order
that the child shall be placed in the suitable home of a relative, in
an emergency shelter or other suitable licensed place, in a place
exempt from licensure designated by the juvenile court, or in an
appropriate certified family home for which the license is pending
and all the prelicense requirements for that placement have been met
as set forth in subdivision (e) of Section 361.2 for a period not to
exceed 15 judicial days.
   As used in this section, "relative" means an adult who is related
to the child by blood, adoption, or affinity within the fifth degree
of kinship, including stepparents, stepsiblings, and all relatives
whose status is preceded by the words "great," "great-great," or
"grand," or the spouse of any of these persons, even if the marriage
was terminated by death or dissolution.  However, only the following
relatives shall be given preferential consideration for placement of
the child:  an adult who is a grandparent, aunt, uncle, or sibling of
the child.
   The court shall consider the recommendations of the social worker
based on the emergency assessment of the relative's suitability,
including the results of a criminal records check and prior child
abuse allegations, if any, prior to ordering that the child be placed
with a relative.  The social worker shall initiate the assessment
pursuant to Section 361.3 of any relative to be considered for
continuing placement.
  SEC. 193.  Section 366.26 of the Welfare and Institutions Code is
amended to read:
   366.26.  (a) This section applies to children who are adjudged
dependent children of the juvenile court pursuant to subdivision (c)
of Section 360.  The procedures specified herein are the exclusive
procedures for conducting these hearings; Part 2 (commencing with
Section 3020) of Division 8 of the Family Code is not applicable to
these proceedings.  Section 8714.7 of the Family Code is applicable
and available to all dependent children meeting the requirements of
that section.  For children who are adjudged dependent children of
the juvenile court pursuant to subdivision (c) of Section 360, this
section and Sections 8604, 8605, 8606, and 8700 of the Family Code
and Chapter 5 (commencing with Section 7660) of Part 3 of Division 12
of the Family Code specify the exclusive procedures for permanently
terminating parental rights with regard to, or establishing legal
guardianship of, the child while the child is a dependent child of
the juvenile court.
   (b) At the hearing, which shall be held in juvenile court for all
children who are dependents of the juvenile court, the court, in
order to provide stable, permanent homes for these children, shall
review the report as specified in Section 361.5, 366.21, or 366.22,
shall indicate that the court has read and considered it, shall
receive other evidence that the parties may present, and then shall
make findings and orders in the following order of preference:
   (1) Terminate the rights of the parent or parents and order that
the child be placed for adoption and, upon the filing of a petition
for adoption in the juvenile court, order that a hearing be set.  The
court shall proceed with the adoption after the appellate rights of
the natural parents have been exhausted.
   (2) On making a finding under paragraph (3) of subdivision (c),
identify adoption as the permanent placement goal and order that
efforts be made to locate an appropriate adoptive family for the
child within a period not to exceed 180 days.
   (3) Appoint a legal guardian for the child and order that letters
of guardianship issue.
   (4) Order that the child be placed in long-term foster care,
subject to the periodic review of the juvenile court under Section
366.3.
   In choosing among the above alternatives, the court shall proceed
pursuant to subdivision (c).
   (c) (1) If the court determines, based on the assessment provided
as ordered under subdivision (i) of Section 366.21 or subdivision (b)
of Section 366.22, and any other relevant evidence, by a clear and
convincing standard, that it is likely the child will be adopted, the
court shall terminate parental rights and order the child placed for
adoption.  The fact that the child is not yet placed in a
pre-adoptive home nor with a relative or foster family who is
prepared to adopt the child, shall not constitute a basis for the
court to conclude that it is not likely the child will be adopted.  A
finding under subdivision (b) or paragraph (1) of subdivision (e) of
Section 361.5 that reunification services shall not be offered, or a
finding under subdivision (e) of Section 366.21 that the whereabouts
of a parent have been unknown for six months or that the parent has
failed to visit or contact the child for six months or that the
parent has been convicted of a felony indicating parental unfitness,
or a finding under Section 366.21 or 366.22 that the court has
continued to remove the child from the custody of the parent or
guardian and has terminated reunification services, shall constitute
a sufficient basis for termination of parental rights unless the
court finds a compelling reason for determining that termination
would be detrimental to the child due to one or more of the following
circumstances:
   (A) The parents or guardians have maintained regular visitation
and contact with the child and the child would benefit from
continuing the relationship.
   (B) A child 12 years of age or older objects to termination of
parental rights.
   (C) The child is placed in a residential treatment facility,
adoption is unlikely or undesirable, and continuation of parental
rights will not prevent finding the child a permanent family
placement if the parents cannot resume custody when residential care
is no longer needed.
   (D) The child is living with a relative or foster parent who is
unable or unwilling to adopt the child because of exceptional
circumstances that do not include an unwillingness to accept legal or
financial responsibility for the child, but who is willing and able
to provide the child with a stable and permanent environment, and the
removal of the child from the physical custody of his or her
relative or foster parent would be detrimental to the emotional
well-being of the child.  This subparagraph does not apply to any
child who is living with a nonrelative and who is either (i) under
six years of age or (ii) a member of a sibling group where at least
one child is under six years of age and the siblings are, or should
be, permanently placed together.
   If the court finds that termination of parental rights would be
detrimental to the child pursuant to subparagraph (A), (B), (C), or
(D), it shall state its reasons in writing or on the record.
   (2) The court shall not terminate parental rights if at each and
every hearing at which the court was required to consider reasonable
efforts or services, the court has found that reasonable efforts were
not made or that reasonable services were not offered or provided.
   (3) If the court finds that termination of parental rights would
not be detrimental to the child pursuant to paragraph (1) and that
the child has a probability for adoption but is difficult to place
for adoption and there is no identified or available prospective
adoptive parent, the court may identify adoption as the permanent
placement goal and, without terminating parental rights, order that
efforts be made to locate an appropriate adoptive family for the
child within a period not to exceed 180 days.  During this 180-day
period, the public agency responsible for seeking adoptive parents
for each child shall, to the extent possible, contact other private
and public adoption agencies regarding the availability of the child
for adoption.  During the 180-day period, the public agency shall
conduct the search for adoptive parents in the same manner as
prescribed for children in Sections 8708 and 8709 of the Family Code.
  At the expiration of this period, another hearing shall be held and
the court shall proceed pursuant to paragraph (1), (3), or (4) of
subdivision (b).  For purposes of this section, a child may only be
found to be difficult to place for adoption if there is no identified
or available prospective adoptive parent for the child because of
the child's membership in a sibling group, or the presence of a
diagnosed medical, physical, or mental handicap, or the child's age
is seven years or more.
   (4) If the court finds that adoption of the child or termination
of parental rights is not in the best interest of the child, because
one of the conditions in subparagraph (A), (B), (C), or (D) of
paragraph (1) or in paragraph (2) applies, the court shall either
order that the present caretakers or other appropriate persons shall
become legal guardians of the child or order that the child remain in
long-term foster care.  Legal guardianship shall be considered
before long-term foster care, if it is in the best interests of the
child and if a suitable guardian can be found.  When the child is
living with a relative or a foster parent who is willing and able to
provide a stable and permanent environment, but not willing to become
a legal guardian, the child shall not be removed from the home if
the court finds the removal would be seriously detrimental to the
emotional well-being of the child because the child has substantial
psychological ties to the relative caretaker or foster parents.  The
court shall also make an order for visitation with the parents or
guardians unless the court finds by a preponderance of the evidence
that the visitation would be detrimental to the physical or emotional
well-being of the child.
   (5) If the court finds that the child should not be placed for
adoption, that legal guardianship shall not be established, and that
there are no suitable foster parents except exclusive-use homes
available to provide the child with a stable and permanent
environment, the court may order the care, custody, and control of
the child transferred from the county welfare department to a
licensed foster family agency.  The court shall consider the written
recommendation of the county welfare director regarding the
suitability of the transfer.  The transfer shall be subject to
further court orders.
   The licensed foster family agency shall place the child in a
suitable licensed or exclusive-use home that has been certified by
the agency as meeting licensing standards.  The licensed foster
family agency shall be responsible for supporting the child and for
providing appropriate services to the child, including those services
ordered by the court.  Responsibility for the support of the child
shall not, in and of itself, create liability on the part of the
foster family agency to third persons injured by the child.  Those
children whose care, custody, and control are transferred to a foster
family agency shall not be eligible for foster care maintenance
payments or child welfare services, except for emergency response
services pursuant to Section 16504.
   (d) The proceeding for the appointment of a guardian for a child
who is a dependent of the juvenile court shall be in the juvenile
court.  If the court finds pursuant to this section that legal
guardianship is the appropriate permanent plan, it shall appoint the
legal guardian and issue letters of guardianship.  The assessment
prepared pursuant to subdivision (g) of Section 361.5, subdivision
(i) of Section 366.21, and subdivision (b) of Section 366.22 shall be
read and considered by the court prior to the appointment, and this
shall be reflected in the minutes of the court.  The person preparing
the assessment may be called and examined by any party to the
proceeding.
   (e) The proceeding for the adoption of a child who is a dependent
of the juvenile court shall be in the juvenile court if the court
finds pursuant to this section that adoption is the appropriate
permanent plan and the petition for adoption is filed in the juvenile
court.  Upon the filing of a petition for adoption, the juvenile
court shall order that an adoption hearing be set.  The court shall
proceed with the adoption after the appellate rights of the natural
parents have been exhausted.  The full report required by Section
8715 of the Family Code shall be read and considered by the court
prior to the adoption and this shall be reflected in the minutes of
the court.  The person preparing the report may be called and
examined by any party to the proceeding.  It is the intent of the
Legislature, pursuant to this subdivision, to give potential adoptive
parents the option of filing in the juvenile court the petition for
the adoption of a child who is a dependent of the juvenile court.
Nothing in this section is intended to prevent the filing of a
petition for adoption in any other court as permitted by law, instead
of in the juvenile court.
   (f) At the beginning of any proceeding pursuant to this section,
if the child or the parents are not being represented by previously
retained or appointed counsel, the court shall proceed as follows:
   (1) The court shall consider whether the interests of the child
require the appointment of counsel.  If the court finds that the
interests of the child do require this protection, the court shall
appoint counsel to represent the child.  If the court finds that the
interests of the child require the representation of counsel, counsel
shall be appointed whether or not the child is able to afford
counsel.  The child shall not be present in court unless the child or
the child's counsel so requests or the court so orders.
   (2) If a parent appears without counsel and is unable to afford
counsel, the court shall appoint counsel for the parent, unless this
representation is knowingly and intelligently waived.  The same
counsel shall not be appointed to represent both the child and his or
her parent.  The public defender or private counsel may be appointed
as counsel for the parent.
   (3) Private counsel appointed under this section shall receive a
reasonable sum for compensation and expenses, the amount of which
shall be determined by the court.  The amount shall be paid by the
real parties in interest, other than the child, in any proportions
the court deems just.  However, if the court finds that any of the
real parties in interest are unable to afford counsel, the amount
shall be paid out of the general fund of the county.
   (g) The court may continue the proceeding for not to exceed 30
days as necessary to appoint counsel, and to enable counsel to become
acquainted with the case.
   (h) At all proceedings under this section, the court shall
consider the wishes of the child and shall act in the best interests
of the child.
   The testimony of the child may be taken in chambers and outside
the presence of the child's parent or parents if the child's parent
or parents are represented by counsel, the counsel is present, and
any of the following circumstances exist:
   (1) The court determines that testimony in chambers is necessary
to ensure truthful testimony.
   (2) The child is likely to be intimidated by a formal courtroom
setting.
   (3) The child is afraid to testify in front of his or her parent
or parents.
   After testimony in chambers, the parent or parents of the child
may elect to have the court reporter read back the testimony or have
the testimony summarized by counsel for the parent or parents.
   The testimony of a child also may be taken in chambers and outside
the presence of the guardian or guardians of a child under the
circumstances specified in this subdivision.
   (i) Any order of the court permanently terminating parental rights
under this section shall be conclusive and binding upon the child,
upon the parent or parents, and upon all other persons who have been
served with a citation by publication or otherwise as provided in
this chapter.  After making the order, the court shall have no power
to set aside, change, or modify it, but nothing in this section shall
be construed to limit the right to appeal the order.
   (j) If the court, by order or judgment, declares the child free
from the custody and control of both parents, or one parent if the
other does not have custody and control, the court shall at the same
time order the child referred to the State Department of Social
Services or a licensed adoption agency for adoptive placement by the
agency.  However, no petition for adoption may be granted until the
appellate rights of the natural parents have been exhausted.  The
State Department of Social Services or licensed adoption agency shall
be responsible for the custody and supervision of the child and
shall be entitled to the exclusive care and control of the child at
all times until a petition for adoption is granted.  With the consent
of the agency, the court may appoint a guardian of the child, who
shall serve until the child is adopted.
   (k) Notwithstanding any other provision of law, the application of
any person who, as a relative caretaker or foster parent, has cared
for a dependent child for whom the court has approved a permanent
plan for adoption, or who has been freed for adoption, shall be given
preference with respect to that child over all other applications
for adoptive placement if the agency making the placement determines
that the child has substantial emotional ties to the relative
caretaker or foster parent and removal from the relative caretaker or
foster parent would be seriously detrimental to the child's
emotional well-being.
   As used in this subdivision, "preference" means that the
application shall be processed and, if satisfactory, the family study
shall be completed before the processing of the application of any
other person for the adoptive placement of the child.
   (l) (1) An order by the court that a hearing pursuant to this
section be held is not appealable at any time unless all of the
following apply:
   (A) A petition for extraordinary writ review was filed in a timely
manner.
   (B) The petition substantively addressed the specific issues to be
challenged and supported that challenge by an adequate record.
   (C) The petition for extraordinary writ review was summarily
denied or otherwise not decided on the merits.
   (2) Failure to file a petition for extraordinary writ review
within the period specified by rule, to substantively address the
specific issues challenged, or to support that challenge by an
adequate record shall preclude subsequent review by appeal of the
findings and orders made pursuant to this section.
   (3) The Judicial Council shall adopt rules of court, effective
January 1, 1995, to ensure all of the following:
   (A) A trial court, after issuance of an order directing a hearing
pursuant to this section be held, shall advise all parties of the
requirement of filing a petition for extraordinary writ review as set
forth in this subdivision in order to preserve any right to appeal
in these issues.  This notice shall be made orally to a party if they
are present at the time of the making of the order or by first-class
mail by the clerk of the court to the last known address of a party
not present at the time of the making of the order.
   (B) The prompt transmittal of the records from the trial court to
the appellate court.
   (C) That adequate time requirements for counsel and court
personnel exist to implement the objective of this subdivision.
   (D) That the parent or guardian, or their trial counsel or other
counsel, is charged with the responsibility of filing a petition for
extraordinary writ relief pursuant to this subdivision.
   (4) The intent of this subdivision is to do both of the following:

   (A) Make every reasonable attempt to achieve a substantive and
meritorious review by the appellate court within the time specified
in Sections 366.21 and 366.22 for holding a hearing pursuant to this
section.
   (B) Encourage the appellate court to determine all writ petitions
filed pursuant to this subdivision on their merits.
   (5) This subdivision shall only apply to cases in which an order
to set a hearing pursuant to this section is issued on or after
January 1, 1995.
                                                   SEC. 194.  Section
781 of the Welfare and Institutions Code is amended to read:
   781.  (a) When a petition has been filed with a juvenile court to
commence proceedings to adjudge a person a ward of the court, a
person is cited to appear before a probation officer or is taken
before a probation officer pursuant to Section 626, or a minor is
taken before any officer of a law enforcement agency, the person or
the county probation officer may petition the court for sealing of
the records.  The petition to seal the records may be filed five
years or more after the jurisdiction of the juvenile court has
terminated over the person or, if no juvenile court petition was
filed, five years or more after the person was cited to appear before
a probation officer or was taken before a probation officer pursuant
to Section 626 or was taken before any officer of a law enforcement
agency, or at any time after the person has reached the age of 18
years.  The petition to seal the records shall include a statement
disclosing whether there is any pending civil litigation relating to
the criminal act that caused the records to be created.  As used in
this section, "records" include records of arrest, records relating
to the person's case, and records in the custody of the juvenile
court, probation officer and any other agencies, including law
enforcement agencies, and public officials that the petitioner
alleges, in his or her petition, to have custody of the records.  The
court shall notify the district attorney of the county and the
county probation officer, if he or she is not the petitioner, and the
district attorney or probation officer or any of their deputies or
any other person having relevant evidence may testify at the hearing
on the petition.  If, after a hearing, the court finds that since the
termination of jurisdiction or action pursuant to Section 626, as
the case may be, he or she has not been convicted of a felony or of
any misdemeanor involving moral turpitude, that rehabilitation has
been attained to the satisfaction of the court, and that the petition
indicates that there is no currently pending civil litigation
directly relating to, or arising from, the criminal act that caused
the records to be created, it shall order all records, papers, and
exhibits in the person's case in the custody of the juvenile court
sealed, including the juvenile court record, minute book entries, and
entries on dockets, and other records relating to the case in the
custody of the other agencies and officials as are named in the
order.  If a ward of the juvenile court is subject to the
registration requirements set forth in Section 290 of the Penal Code,
a court, in ordering the sealing of the juvenile records of the
person, also shall provide in the order that the person is relieved
from the registration requirement and for the destruction of all
registration information in the custody of the Department of Justice
and other agencies and officials.  Notwithstanding any other
provision of law, the court shall not order the person's records
sealed in any case in which the person has been found by the juvenile
court to have committed an offense listed in subdivision (b) of,
paragraph (2) of subdivision (d) of, or subdivision (e) of, Section
707 until at least six years have elapsed since commission of the
offense listed in those provisions.  The court shall not order the
records sealed in any case unless the petition indicates that there
is no pending civil litigation directly relating to, or arising from,
the criminal act that caused the records to be created.  However,
once the civil case is closed, the records may be sealed.  Once the
court has ordered the person's records sealed, the proceedings in the
case shall be deemed never to have occurred, and the person may
properly reply accordingly to any inquiry about the events, the
records of which are ordered sealed.  The court shall send a copy of
the order to each agency and official named therein, directing the
agency to seal its records and stating the date thereafter to destroy
the sealed records.  Each agency and official shall seal the records
in its custody as directed by the order, shall advise the court of
its compliance, and thereupon shall seal the copy of the court's
order for sealing of records that it, he, or she received.  The
person who is the subject of records sealed pursuant to this section
may petition the superior court to permit inspection of the records
by persons named in the petition, and the superior court may so
order.  Otherwise, except as provided in subdivision (b), the records
shall not be open to inspection.
   (b) In any action or proceeding based upon defamation, a court,
upon a showing of good cause, may order any records sealed under this
section to be opened and admitted into evidence.  The records shall
be confidential and shall be available for inspection only by the
court, jury, parties, counsel for the parties, and any other person
who is authorized by the court to inspect them.  Upon the judgment in
the action or proceeding becoming final, the court shall order the
records sealed.
   (c) (1) Subdivision (a) does not apply to Department of Motor
Vehicles records of any convictions for offenses under the Vehicle
Code or any local ordinance relating to the operation, stopping and
standing, or parking of a vehicle where the record of that conviction
would be a public record under Section 1808 of the Vehicle Code.
However, if a court orders a case record containing that conviction
to be sealed under this section, and if the Department of Motor
Vehicles maintains a public record of the conviction, the court shall
notify the Department of Motor Vehicles of the sealing and the
department shall advise the court of its receipt of the notice.
   Notwithstanding any other provision of law, subsequent to the
notification, the Department of Motor Vehicles shall allow access to
its record of convictions only to the subject of the record and to
insurers that have been granted requester code numbers by the
department.  Any insurer to which a record of conviction is
disclosed, when that conviction record has otherwise been sealed
under this section, shall be given notice of the sealing when the
record is disclosed to the insurer.  The insurer may use the
information contained in the record for purposes of determining
eligibility for insurance and insurance rates for the subject of the
record, and the information shall not be used for any other purpose
nor shall it be disclosed by an insurer to any person or party not
having access to the record.
   (2) This subdivision shall not be construed as preventing the
sealing of any record that is maintained by any agency or party other
than the Department of Motor Vehicles.
   (3) This subdivision shall not be construed as affecting the
procedures or authority of the Department of Motor Vehicles for
purging department records.
   (d) Unless for good cause the court determines that the juvenile
court record shall be retained, the court shall order the destruction
of a person's juvenile court records that are sealed pursuant to
this section as follows:  five years after the record was ordered
sealed, if the person who is the subject of the record was alleged or
adjudged to be a person described by Section 601; or when the person
who is the subject of the record reaches the age of 38 if the person
was alleged or adjudged to be a person described by Section 602.
Any other agency in possession of sealed records may destroy its
records five years after the record was ordered sealed.
   (e) This section shall not permit the sealing of a person's
juvenile court records for an offense where the person is convicted
of that offense in a criminal court pursuant to the provisions of
Section 707.1.  This subdivision is declaratory of existing law.
   (f) Notwithstanding any other provision of law, the records of a
juvenile who was 16 years of age or older at the time he or she
committed any criminal offense listed in subdivision (b) of Section
707  shall not be destroyed.
   (g) Notwithstanding any other provision of law, in any criminal
prosecution in which an enhancement is alleged pursuant to Section
667 or 1170.12 of the Penal Code, the parties shall be entitled to
inspect, copy, and introduce into evidence for the purpose of proving
the alleged enhancement, any juvenile records of the person named in
the criminal complaint or information, whether or not those records
have been sealed, where the person was found to have committed, when
he or she was 16 years of age or older, an offense set forth in
subdivision (b) of Section 707.  Except as provided herein, these
records shall be confidential and available for inspection and
copying only by the court, the jury, as authorized by the court,
parties, counsel for the parties, and any other person authorized by
the court.  In the case of an acquittal or if the enhancement
allegations under Section 667 or 1170.12 of the Penal Code are
stricken, the court shall order the records resealed.
  SEC. 195.  Section 1790 of the Welfare and Institutions Code is
amended and renumbered to read:
   1787.  The Legislature finds and declares all of the following:
   (a) A tremendous percentage of juveniles who commit status
offenses including, but not limited to, running away, school truancy
and incorrigibility, ultimately enter the juvenile justice system for
subsequently engaging in delinquent, otherwise criminal behavior.
   (b) In 1990, it was estimated that 48,629 youths ran away from
their homes in California.
   (c) In 1989, 776 runaway youths served by 33 nonprofit
youth-runaway shelters in California, surveyed during a one-month
period, identified one or more of the following as a problem:


    (1) Family crisis .......................       73%
    (2) School problems .....................       63%
    (3) Victims of crime/abuse ..............       57%
    (4) Homeless/runaway ....................       55%
    (5) Substance abuse .....................       43%
    (6) Delinquent behavior .................       26%
    (7) Other ...............................        9%

   (d) It is estimated that 43 emergency shelters presently serve
runaway youths as well as homeless youths and adults in California.
   (e) It is estimated that 10 transitional living facilities are
operated presently in California to provide youths with independent
living skills, employment skills, and home responsibilities.
   (f) It is conservatively projected that by the year 2000 there
will be a deficit of 1,222 emergency shelter beds and 930 long-term
beds statewide.
   (g) Resources for runaway, homeless, and at-risk youth and their
families are severely inadequate to meet their needs.
   (h) The Counties of Fresno, Sacramento, San Bernardino, and Solano
either (1) do not provide temporary or long-term shelter services or
family crises services to runaway, homeless, and nonrunaway youth,
or (2) do provide such services but at levels which substantially
fail to meet the need.
   The purpose of this chapter, therefore, is to establish three-year
pilot projects in San Joaquin Central Valley, in the northern region
of California, and in the southern region of California, whereby
each project will provide temporary shelter services, transitional
living shelter services, and low-cost family crisis resolution
services based on a sliding fee scale to runaway youth, nonrunaway
youth, and their working families.  It is the intent of this chapter
that services will be provided to prevent at-risk youth from engaging
in delinquent and criminal behavior and to reduce the numbers of
at-risk families from engaging in neglectful, abusive, and criminal
behavior.
  SEC. 196.  Section 1791 of the Welfare and Institutions Code is
amended and renumbered to read:
   1788.  Each Runaway Youth and Families in Crisis Project
established under this chapter shall provide services which shall
include, but not be limited to, all of the following:
   (a) Temporary shelter and related services to runaway youth.  The
services shall include:
   (1) Food and access to overnight shelter for no more than 14 days.

   (2) Counseling and referrals to services which address immediate
emotional needs or problems.
   (3) Screening for basic health needs and referral to public and
private health providers for health care.  Shelters that are not
equipped to house a youth with substance abuse problems shall refer
that youth to an appropriate clinic or facility.  The shelter shall
monitor the youth's progress and assist the youth with services upon
his or her release from the substance abuse facility.
   (4) Long-term planning so that the youth may be returned to the
home of the parent or guardian under conditions which favor long-term
reunification with the family, or so the youth can be suitably
placed in a situation outside of the parental or guardian home when
such reunification is not possible.
   (5) Outreach services and activities to locate runaway youth and
to link them with project services.
   (b) Family crisis resolution services to runaway and nonrunaway
youth and their families which shall include:
   (1) Parent training.
   (2) Family counseling.
   (3) Services designed to reunify youth and their families.
   (4) Referral to other services offered in the community by public
and private agencies.
   (5) Long-term planning so that the youth may be returned to the
home of the parent or guardian under conditions which favor long-term
reunification with the family, or so the youth can be suitably
placed in a situation outside of the parental or guardian home when
such reunification is not possible.
   (6) Followup services to ensure that the return to the parent or
guardian or the placement outside of the parental or guardian home is
stable.
   (7) Outreach services and activities to locate runaway and
nonrunaway youth and to link them with project services.
   (c) Transitional living services shall include:
   (1) Long-term shelter.
   (2) Independent living skill services.
   (3) Preemployment and employment skills training.
   (4) Home responsibilities training.
   (d) Where appropriate and necessary, some of the services
identified under this section must also be provided in the local
community and in the home of project clients.  Projects shall notify
parents that their children are staying at a project site consistent
with state and federal parent notification requirements.
  SEC. 197.  Section 1792 of the Welfare and Institutions Code is
amended and renumbered to read:
   1789.  (a) A Runaway Youth and Families in Crisis Project shall be
established in one or more counties in the San Joaquin Central
Valley, in one or more counties in the northern region of California,
and in one or more counties in the southern region of California.
Each project may have one central location, or more than one site, in
order to effectively serve the target population.
   (b) The Office of Criminal Justice Planning shall prepare and
disseminate a request for proposals to prospective grantees under
this chapter within four months after this chapter has been approved
and enacted by the Legislature.  The Office of Criminal Justice
Planning shall enter into grant award agreements for a period of no
less than three years, and the operation of projects shall begin no
later than four months after grant award agreements are entered into
between the Office of Criminal Justice Planning and the grantee.
Grants shall be awarded based on the quality of the proposal, the
documented need for services in regard to runaway youth, and to
organizations, as specified in subdivision (d) of this section, in
localities that receive a disproportionately low share of existing
federal and state support for youth shelter programs.
   (c) The Office of Criminal Justice Planning shall require
applicants to identify, in their applications, measurable outcomes by
which the Office of Criminal Justice Planning will measure the
success of the applicant's project.  These measurable outcomes shall
include, but not be limited to, the number of clients served and the
percentage of clients who are successfully returned to the home of a
parent or guardian or to an alternate living condition when
reunification is not possible.
   (d) Only private, nonprofit organizations shall be eligible to
apply for funds under this chapter to operate a Runaway Youth and
Families in Crisis Project, and these organizations shall be required
to annually contribute a local match of at least 15 percent in cash
or in-kind contribution to the project during the term of the grant
award agreement.  Preference shall be given to organizations that
demonstrate a record of providing effective services to runaway youth
or families in crisis for at least three years, successfully
operating a youth shelter for runaway and homeless youth, or
successfully operating a transitional living facility for runaway and
homeless youth who do not receive transitional living services
through the juvenile justice system.  Additional weight shall also be
given to those organizations that demonstrate a history of
collaborating with other agencies and individuals in providing such
services.  Priority shall be given to organizations with existing
facilities.  Preference shall also be given to organizations that
demonstrate the ability to progressively decrease their reliance on
resources provided under this chapter and to operate this project
beyond the period that the organization receives funds under this
chapter.
  SEC. 198.  Section 1793 of the Welfare and Institutions Code is
amended and renumbered to read:
   1789.5  The Office of Criminal Justice Planning shall monitor and
evaluate the projects established under this chapter, and shall
report to the Legislature after the first and third year of the
program's operation the results of its evaluation.  In addition, each
project shall be responsible for evaluating the effectiveness of its
programs and services.
  SEC. 199.  Section 1801 of the Welfare and Institutions Code is
amended to read:
   1801.  (a) If a petition is filed with the court for an order as
provided in Section 1800 and, upon review, the court determines that
the petition, on its face, supports a finding of probable cause, the
court shall order that a hearing be held pursuant to subdivision (b).
  The court shall notify the person whose liberty is involved and, if
the person is a minor, his or her parent or guardian (if that person
can be reached, and, if not, the court shall appoint a person to act
in the place of the parent or guardian) of the hearing, and shall
afford the person an opportunity to appear at the hearing with the
aid of counsel and the right to cross-examine experts or other
witnesses upon whose information, opinion, or testimony the petition
is based.  The court shall inform the person named in the petition of
his or her right of process to compel attendance of relevant
witnesses and the production of relevant evidence.  When the person
is unable to provide his or her own counsel, the court shall appoint
counsel to represent him or her.
   The probable cause hearing shall be held within 10 calendar days
after the date the order is issued pursuant to this subdivision
unless the person named in the petition waives this time.
   (b) At the probable cause hearing, the court shall receive
evidence and determine whether there is probable cause to believe
that discharge of the person would be physically dangerous to the
public because of his or her mental or physical deficiency, disorder,
or abnormality.  If the court determines there is not probable
cause, the court shall dismiss the petition and the person shall be
discharged from the control of the authority at the time required by
Section 1766, 1769, 1770, 1770.1, or 1771, as applicable.  If the
court determines there is probable cause, the court shall order that
a trial be conducted to determine whether the person is physically
dangerous to the public because of his or her mental or physical
deficiency, disorder, or abnormality.
  SEC. 200.  Section 5768.5 of the Welfare and Institutions Code is
amended to read:
   5768.5.  (a) When a mental health patient is being discharged from
any facility authorized under Section 5675 or 5768, the patient and
the patient's conservator, guardian, or other legally authorized
representative shall be given a written aftercare plan prior to the
patient's discharge from the facility.  The written aftercare plan
shall include, to the extent known, the following components:
   (1) The nature of the illness and followup required.
   (2) Medications, including side effects and dosage schedules.  If
the patient was given an informed consent form with his or her
medications, the form shall satisfy the requirement for information
on side effects of the medications.
   (3) Expected course of recovery.
   (4) Recommendations regarding treatment that are relevant to the
patient's care.
   (5) Referrals to providers of medical and mental health services.

   (6) Other relevant information.
   (b) The patient shall be advised by facility personnel that he or
she may designate another person to receive a copy of the aftercare
plan.  A copy of the aftercare plan shall be given to any person
designated by the patient.
   (c) For purposes of this section, "mental health patient" means a
person who is admitted to the facility primarily for the diagnosis or
treatment of a mental disorder.
  SEC. 201.  Section 6609.1 of the Welfare and Institutions Code is
amended to read:
   6609.1.  (a) When the State Department of Mental Health makes a
recommendation to the court for community outpatient treatment for
any person committed as a sexually violent predator, it shall notify
the sheriff or chief of police, or both, the district attorney, or
the county's designated counsel, that have jurisdiction over the
following locations:
   (1) The community in which the person may be released for
community outpatient treatment.
   (2) The community in which the person maintained his or her last
legal residence as defined by Section 3003 of the Penal Code.
   (3) The county that filed for the person's civil commitment
pursuant to this article.
   The department shall also notify the Sexually Violent Predator
Parole Coordinator of the Department of Corrections, if the person is
otherwise subject to parole pursuant to Article 1 (commencing with
Section 3000) of Chapter 8 of Title 1 of Part 3 of the Penal Code.
   The notice shall be given at least 15 days prior to the department'
s submission of its recommendation to the court.
   (b) When the State Department of Mental Health makes a
recommendation to pursue recommitment, makes a recommendation not to
pursue recommitment, or seeks a judicial review of commitment status
pursuant to subdivision (f) of Section 6605, of any person committed
as a sexually violent predator, it shall provide written notice of
that action to the sheriff or chief of police, or both, and to the
district attorney, that have jurisdiction over the following
locations:
   (1) The community in which the person maintained his or her last
legal residence as defined by Section 3003 of the Penal Code.
   (2) The probable community in which the person will be released,
if recommending not to pursue recommitment.
   (3) The county that filed for the person's civil commitment
pursuant to this article.
   The State Department of Mental Health shall also notify the
Sexually Violent Predator Parole Coordinator of the Department of
Corrections, if the person is otherwise subject to parole pursuant to
Article 1 (commencing with Section 3000) of Chapter 8 of Title 1 of
Part 3 of the Penal Code.  The notice shall be made at least 15 days
prior to the department's submission of its recommendation to the
court.
   Those agencies receiving the notice referred to in this
subdivision shall have 15 days from receipt of the notice to provide
written comment to the department regarding the impending release.
Those comments shall be considered by the department, which may
modify its decision regarding the community in which the person is
scheduled to be released, based on those comments.
   (c) If the court orders the release of a sexually violent
predator, the court shall notify the Sexually Violent Predator Parole
Coordinator of the Department of Corrections.  The Department of
Corrections shall notify the State Department of Mental Health, the
sheriff or chief of police, or both, and the district attorney, that
have jurisdiction over the following locations:
   (1) The community in which the person is to be released.
   (2) The community in which the person maintained his or her last
legal residence as defined in Section 3003 of the Penal Code.
   The Department of Corrections shall make the above notifications
regardless of whether the person released will be serving a term of
parole after release by the court.
   (d) If the person is otherwise subject to parole pursuant to
Article 1 (commencing with Section 300) of Chapter 8 of Title 1 of
Part 3 of the Penal Code, to allow adequate time for the Department
of Corrections to make appropriate parole arrangements upon release
of the person, the person shall remain in physical custody for a
period not to exceed 72 hours or until parole arrangements are made
by the Sexually Violent Predator Parole Coordinator of the Department
of Corrections, whichever is sooner.  To facilitate timely parole
arrangements, notification to the Sexually Violent Predator Parole
Coordinator of the Department of Corrections of the pending release
shall be made by telephone or facsimile and, to the extent possible,
notice of the possible release shall be made in advance of the
proceeding or decision determining whether to release the person.
   (e) The notice required by this section shall be made whether or
not a request has been made pursuant to Section 6609.
   (f) The time limits imposed by this section are not applicable
when the release date of a sexually violent predator has been
advanced by a judicial or administrative process or procedure that
could not have reasonably been anticipated by the State Department of
Mental Health and where, as the result of the time adjustments,
there is less than 30 days remaining on the commitment before the
inmate's release, but notice shall be given as soon as practicable.
In no case shall notice required by this section to the appropriate
agency be later than the day of release.
   (g) The provisions of this section are severable.  If any
provision of this section or its application is held invalid, that
invalidity shall not affect other provisions or
                              applications that can be given effect
without the invalid provision or application.
  SEC. 202.  Section 10980 of the Welfare and Institutions Code is
amended to read:
   10980.  (a) Any person who, willfully and knowingly, with the
intent to deceive, makes a false statement or representation or
knowingly fails to disclose a material fact in order to obtain aid
under the provisions of this division or who, knowing he or she is
not entitled thereto, attempts to obtain aid or to continue to
receive aid to which he or she is not entitled, or to receive a
larger amount than that to which he or she is legally entitled, is
guilty of a misdemeanor, punishable by imprisonment in the county
jail for a period of not more than six months, by a fine of not more
than five hundred dollars ($500), or by both imprisonment and fine.
   (b) Any person who knowingly makes more than one application for
aid under the provisions of this division with the intent of
establishing multiple entitlements for any person for the same period
or who makes an application for that aid for a fictitious or
nonexistent person or by claiming a false identity for any person is
guilty of a felony, punishable by imprisonment in the state prison
for a period of 16 months, two years, or three years, by a fine of
not more than five thousand dollars ($5,000), or by both imprisonment
and fine ; or by imprisonment in the county jail for a period of not
more than one year, or by a fine of not more than one thousand
dollars ($1,000), or by both imprisonment and fine.
   (c) Whenever any person has, by means of false statement or
representation or by impersonation or other fraudulent device,
obtained or retained aid under the provisions of this division for
himself or herself or for a child not in fact entitled thereto, the
person obtaining this aid shall be punished as follows:
   (1) If the total amount of the aid obtained or retained is four
hundred dollars ($400) or less, by imprisonment in the county jail
for a period of not more than six months, by a fine of not more than
five hundred dollars ($500), or by both imprisonment and fine.
   (2) If the total amount of the aid obtained or retained is more
than four hundred dollars ($400), by imprisonment in the state prison
for a period of 16 months, two years, or three years, by a fine of
not more than five thousand dollars ($5,000), or by both imprisonment
and fine; or by imprisonment in the county jail for a period of not
more than one year, by a fine of not more than one thousand dollars
($1,000), or by both imprisonment and fine.
   (d) Any person who knowingly uses, transfers, acquires, or
possesses blank authorizations to participate in the federal Food
Stamp Program in any manner not authorized by Chapter 10 (commencing
with Section 18900) of Part 6 with the intent to defraud is guilty of
a felony, punishable by imprisonment in the state prison for a
period of 16 months, two years, or three years, by a fine of not more
than five thousand dollars ($5,000), or by both imprisonment and
fine.
   (e) Any person who counterfeits or alters or knowingly uses,
transfers, acquires, or possesses counterfeited or altered
authorizations to participate in the federal Food Stamp Program or to
receive food stamps or electronically transferred benefits in any
manner not authorized by the Food Stamp Act of 1964 (Public Law
88-525 and all amendments thereto) or the federal regulations
pursuant to the act is guilty of forgery.
   (f) Any person who fraudulently appropriates food stamps,
electronically transferred benefits, or authorizations to participate
in the federal Food Stamp Program with which he or she has been
entrusted pursuant to his or her duties as a public employee is
guilty of embezzlement of public funds.
   (g) Any person who knowingly uses, transfers, sells, purchases, or
possesses food stamps, electronically transferred benefits, or
authorizations to participate in the federal Food Stamp Program in
any manner not authorized by Chapter 10 (commencing with Section
18900), of Part 6, or by the federal Food Stamp Act of 1977 (Public
Law 95-113 and all amendments thereto) (1) is guilty of a misdemeanor
if the face value of the food stamp benefits or the authorizations
to participate is four hundred dollars ($400) or less, and shall be
punished by imprisonment in the county jail for a period of not more
than six months, by a fine of not more than five hundred dollars
($500), or by both imprisonment and fine, or (2) is guilty of a
felony if the face value of the food stamps or the authorizations to
participate exceeds four hundred dollars ($400), and shall be
punished by imprisonment in the state prison for a period of 16
months, two years, or three years, by a fine of not more than five
thousand dollars ($5,000), or by both imprisonment and fine, or by
imprisonment in the county jail for a period of not more than one
year, or by a fine of not more than one thousand dollars ($1,000), or
by both imprisonment and fine.
   (h) (1) If the violation of subdivision (f) or (g) is committed by
means of an electronic transfer of benefits, in addition and
consecutive to the penalties for the violation, or attempted
violation, of those subdivisions, the court shall impose the
following punishment:
   (A) If the electronic transfer of benefits exceeds fifty thousand
dollars ($50,000), an additional term of one year in state prison.
   (B) If the electronic transfer of benefits exceeds one hundred
fifty thousand dollars ($150,000), an additional term of two years in
state prison.
   (C) If the electronic transfer of benefits exceeds one million
dollars ($1,000,000), an additional term of three years in state
prison.
   (D) If the electronic transfer of benefits exceeds two million
five hundred thousand dollars ($2,500,000), an additional term of
four years.
   (2) In any accusatory pleading involving multiple charges of
violations of subdivision (f) or (g), or both, committed by means of
an electronic transfer of benefits, the additional terms provided in
paragraph (1) may be imposed if the aggregate losses to the victims
from all violations exceed the amounts specified in this paragraph
and arise from a common scheme or plan.
   (i) A person who is punished by an additional term of imprisonment
under another provision of law for a violation of subdivision (f) or
(g) shall not receive an additional term of imprisonment under
subdivision (h).
  SEC. 203.  Section 11008.19 of the Welfare and Institutions Code,
as added by Section 2 of Chapter 962 of the Statutes of 1998, is
amended and renumbered to read:
   11008.20.  (a) Notwithstanding any other provision of law, any
amount, including any interest or property, received by a holocaust
victim, as defined in subparagraph (A) of paragraph (2) of
subdivision (b) of Section 17155 of the Revenue and Taxation Code
either as compensation pursuant to the German Act Regulating
Unresolved Property Claims, as amended (Gesetz zur Regelung offener
Vermogensfragen), or as a result of a settlement of claims against
any entity or individual for any recovered asset, shall not be
considered as income or resources for purposes of determining
eligibility to receive Medi-Cal benefits or public assistance
benefits or the amounts of those benefits.
   (b) This section shall not be construed to permit any retroactive
services or payments to be provided to recipients of Medi-Cal or
public assistance benefits.
  SEC. 204.  Section 11369 of the Welfare and Institutions Code is
amended to read:
   11369.  The department shall adopt regulations, as otherwise
necessary, to implement this article.  Emergency regulations to
implement this article may be adopted by the department in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.  The adoption of these
regulations shall be deemed an emergency and necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.
  SEC. 205.  Section 11401 of the Welfare and Institutions Code is
amended to read:
   11401.  Aid in the form of AFDC-FC shall be provided under this
chapter on behalf of any child under the age of 18 years, except as
provided in Section 11403, who meets the conditions of subdivision
(a), (b), (c), (d), (e), or (f):
   (a) The child has been relinquished, for purposes of adoption, to
a licensed adoption agency, or the department, or the parental rights
of either or both of his or her parents have been terminated after
an action under the Family Code has been brought by a licensed
adoption agency or the department, provided that the licensed
adoption agency or the department, if responsible for placement and
care, provides to such children all services as required by the
department to children in foster care.
   (b) The child has been removed from the physical custody of his or
her parent, relative, or guardian as a result of a voluntary
placement agreement or a judicial determination that continuance in
the home would be contrary to the child's welfare and that, if the
child was placed in foster care, reasonable efforts were made,
consistent with Chapter 5 (commencing with Section 16500) of Part 4,
to prevent or eliminate the need for removal of the child from his or
her home and to make it possible for the child to return to his or
her home, or, in cases where the first contact with the family occurs
during an emergency situation in which the child could not safely
remain at home even with reasonable efforts being provided, the child
has been removed as a result of a judicial determination that lack
of preplacement preventive efforts, as defined in Section 16501.1,
was reasonable, and any of the following apply:
   (1) The child has been adjudged a dependent child of the court on
the grounds that he or she is a person described by Section 300.
   (2) The child has been adjudged a ward of the court on the grounds
that he or she is a person described by Sections 601 and 602.
   (3) The child has been detained under a court order, pursuant to
Section 319 or 636, that remains in effect.
   (c) The child has been voluntarily placed by his or her parent or
guardian pursuant to Section 11401.1.
   (d) The child is living in the home of a nonrelated legal
guardian.
   (e) The child has been placed in foster care under the federal
Indian Child Welfare Act.  Sections 11402, 11404, and 11405 shall not
be construed as limiting payments to Indian children, as defined in
the federal Indian Child Welfare Act, placed in accordance with that
act.
   (f) To be eligible for federal financial participation, all of the
following conditions shall exist:
   (1) The child meets the conditions of subdivision (b).
   (2) The child has been deprived of parental support or care for
any of the reasons set forth in Section 11250.
   (3) The child has been removed from the home of a relative as
defined in Section 233.90(c)(1) of Title 45 of the Code of Federal
Regulations, as amended.
   (4) The requirements of Sections 671 and 672 of Title 42 of the
United States Code, as amended, have been met.
  SEC. 206.  Section 12302.3 of the Welfare and Institutions Code is
amended to read:
   12302.3.  (a) Notwithstanding any other provision of this article,
and in a manner consistent with the powers available to public
authorities created under this article, the City and County of San
Francisco may do any of the following:
   (1) Increase the wages of all in-home supportive services
providers.
   (2) Subject to the requirements of federal law, use county-only
funds to fund county and state shares to meet federal financial
participation requirements necessary to obtain any available personal
care services reimbursement under Title XIX of the federal Social
Security Act (42 U.S.C.  Sec. 1396 et seq.) (Medicaid).
   (3) Provide in-home supportive services workers with any wage
increase the city and county may appropriate, as long as this amount
is in accordance with the provisions of the Medi-Cal State Plan
Amendment 94-006, as approved by the federal Health Care Financing
Administration.  The county-only funds shall be used exclusively to
increase workers' wages and to pay any proportionate share of
employer taxes and current benefits, and to pay for the cost of state
and county administration of these activities as provided for in
paragraph (5).  Notwithstanding Section 12302.1, any wage increase
for those workers employed under contract shall be passed through by
the contractor to the workers, subject to the limitations specified
in this paragraph.  The state shall continue to provide payroll
functions for all workers who are currently individual providers
unless and until the in-home supportive services public authority is
operational.
   (4) Claim the administrative costs of the wage passthrough in
accordance with the department's claiming requirements.
   (5) If that federal financial participation is available for
county-only payroll moneys, the following shall apply:
   (A) If additional payroll costs will be incurred by the state due
to the receipt and payment of federal funds, the department shall
provide the city and county with a detailed estimate of the
additional costs of the provision of payroll functions associated
with the processing of federal funds.  If the city and county elects
to pay the additional costs, the department will provide these
payroll functions.  If the city and county does not elect to pay the
additional costs, the department and the city and county may seek
another, mutually satisfactory arrangement.
   (B) If that federal financial participation is not available, the
department shall continue to perform the existing payroll functions
provided on July 28, 1995, at no additional cost to the city and
county.
   (b) (1) This section shall not be implemented with respect to any
particular wage increase pursuant to subdivision (a) unless the
department has obtained the approval of the State Department of
Health Services for that wage increase prior to its execution to
determine that it is consistent with federal law and to ensure
federal financial participation for the services under Title XIX of
the federal Social Security Act (42 U.S.C. Sec. 1396 et seq.).
   (2) The Director of Health Services shall seek any federal waivers
or approvals necessary for implementation of this section under
Title XIX of the federal Social Security Act (42 U.S.C. Sec. 1396 et
seq.).
  SEC. 207.  Section 16118 of the Welfare and Institutions Code is
amended to read:
   16118.  (a) The department shall establish and administer the
program to be carried out by the department or the county pursuant to
this chapter.  The department shall adopt any regulations necessary
to carry out the provisions of this chapter.
   (b) The department shall keep any records necessary to evaluate
the program's effectiveness in encouraging and promoting the adoption
of children eligible for the Adoption Assistance Program.
   (c) The department or the county responsible for providing
financial aid in the amount determined in Section 16120 shall have
responsibility for certifying that the child meets the eligibility
criteria and for determining the amount of financial assistance
needed by the child and the adopting family.
   (d) The department shall actively seek and make maximum use of
federal funds that may be available for the purposes of this chapter.
  All gifts or grants received from private sources for the purpose
of this chapter shall be used to offset public costs incurred under
the program established by this chapter.
   (e) For purposes of this chapter, the county responsible for
determining the child's Adoption Assistance Program eligibility
status and for providing financial aid in the amount determined in
Sections 16120 and 16120.1 shall be the county that at the time of
the adoptive placement would otherwise be responsible for making a
payment pursuant to Section 11450 under the Aid to Families with
Dependent Children program or Section 11461 under the Aid to Families
with Dependent Children-Foster Care program if the child had not
been adopted.  The responsible county for all other eligible children
shall be the county where the child is physically residing prior to
placement with the adoptive family.  The responsible county shall
certify eligibility on a form prescribed by the department.
  SEC. 208.  Section 16501.1 of the Welfare and Institutions Code is
amended to read:
   16501.1.  (a) The Legislature finds and declares that the
foundation and central unifying tool in child welfare services is the
case plan.
   (b) The Legislature further finds and declares that a case plan
ensures that the child receives protection and safe and proper care
and case management, and that services are provided to the child and
parents or other caretakers as appropriate in order to improve
conditions in the parent's home, to facilitate the safe return of the
child to a safe home or the permanent placement of the child, and to
address the needs of the child while in foster care.  A case plan
shall be based upon the principles of this section and shall document
that a preplacement assessment of the service needs of the child and
family, and preplacement preventive services, have been provided,
and that reasonable efforts to prevent out-of-home placement have
been made.  In determining the reasonable services to be offered or
provided, the child's health and safety shall be the paramount
concerns.  Reasonable services shall be offered or provided to make
it possible for a child to return to a safe home environment, unless,
pursuant to subdivisions (b) and (e) of Section 361.5, the court
determines that reunification services shall not be provided.  If
reasonable services are not ordered, or are terminated, reasonable
efforts shall be made to place the child in a timely manner in
accordance with the permanent plan and to complete all steps
necessary to finalize the permanent placement of the child.
   (c) When out-of-home placement is used to attain case plan goals,
the decision regarding choice of placement shall be based upon
selection of a safe setting that is the least restrictive or most
familylike, and the most appropriate setting that is available and in
close proximity to the parent's home, consistent with the selection
of the environment best suited to meet the child's special needs and
best interest, or both.  The selection shall consider, in order of
priority, placement with relatives, tribal members, and foster
family, group care, and residential treatment pursuant to Section
7950 of the Family Code.
   (d) A written case plan shall be completed within 30 days of the
initial removal of the child or of the in-person response required
under subdivision (f) of Section 16501 if the child has not been
removed from his or her home, or by the date of the dispositional
hearing pursuant to Section 358, whichever occurs first.  The case
plan shall be updated as the service needs of the child and family
dictate.  At a minimum, the case plan shall be updated in conjunction
with each status review hearing conducted pursuant to Section
366.21, and the hearing conducted pursuant to Section 366.26, but no
less frequently than once every six months.  Each updated case plan
shall include a description of the services that have been provided
to the child under the plan and an evaluation of the appropriateness
and effectiveness of those services.
   (e) The child welfare services case plan shall be comprehensive
enough to meet the juvenile court dependency proceedings requirements
pursuant to Article 6 (commencing with Section 300) of Chapter 2 of
Part 1 of Division 2.
   (f) The case plan shall be developed as follows:
   (1) The case plan shall be based upon an assessment of the
circumstances that required child welfare services intervention.
   (2) The case plan shall identify specific goals and the
appropriateness of the planned services in meeting those goals.
   (3) The case plan shall identify the original allegations of abuse
or neglect, as defined in Article 2.5 (commencing with Section
11164) of Chapter 2 of Title 1 of Part 4 of the Penal Code, or the
conditions cited as the basis for declaring the child a dependent of
the court pursuant to Section 300, or all of these, and the other
precipitating incidents  that led to child welfare services
intervention.
   (4) The case plan shall include a description of the schedule of
the social worker contacts with the child and the family or other
caretakers.  The frequency of these contacts shall be in accordance
with regulations adopted by the State Department of Social Services.
If the child has been placed in foster care out of state, the county
social worker or a social worker on the staff of the social service
agency in the state in which the child has been placed shall visit
the child in a foster family home or the home of a relative at least
every 12 months and submit a report to the court on each visit.  For
children in out-of-state group home facilities, visits shall be
conducted at least monthly, pursuant to Section 16516.5.
   (5) When out-of-home services are used, the frequency of contact
between the natural parents or legal guardians and the child shall be
specified in the case plan.  The frequency of those contacts shall
reflect overall case goals, and consider other principles outlined in
this section.
   (6) When out-of-home placement is made, the case plan shall
include documentation of the provisions specified in subdivisions
(b), (c), and (d) of Section 16002.
   (7) When out-of-home placement is made in a foster family home,
group home, or other child care institution that is either a
substantial distance from the home of the child's parent or out of
state, the case plan shall specify the reasons why that placement is
in the best interest of the child. When an out-of-state group home
placement is recommended or made, the case plan shall, in addition,
specify compliance with Section 7911.1 of the Family Code.
   (8) When out-of-home services are used, or when parental rights
have been terminated and the case plan is placement for adoption, the
case plan shall include a recommendation regarding the
appropriateness of unsupervised visitation between the child and any
of the child's siblings.  This recommendation shall include a
statement regarding the child's and the siblings' willingness to
participate in unsupervised visitation.  If the case plan includes a
recommendation for unsupervised sibling visitation, the plan shall
also note that information necessary to accomplish this visitation
has been provided to the child or to the child's siblings.
   (9) When out-of-home services are used and the goal is
reunification, the case plan shall describe the services to be
provided to assist in reunification and the services to be provided
concurrently to achieve legal permanency if efforts to reunify fail.

   (10) When out-of-home services are used, the child's case plan is
subject to review at the first 12-month permanency hearing and, if
the case plan is not adoptive placement, the case plan shall include
documentation of the compelling reason or reasons why termination of
parental rights is not in the child's best interest.  A determination
by the department, when it is acting as an adoption agency, or by a
licensed adoption agency that adoption of the child is unlikely, or
that one of the conditions described in paragraph (1) of subdivision
(c) of Section 366.26 applies, shall be deemed a compelling reason.
   (11) (A) Parents and legal guardians shall have an opportunity to
review the case plan and sign it whenever possible, after which they
shall receive a copy of the plan.  In any voluntary service or
placement agreement, the parents or legal guardians shall be required
to review and sign the case plan.  Whenever possible, parents and
legal guardians shall participate in the development of the case
plan.
   (B) Parents and legal guardians shall be advised that, pursuant to
Section 1228.1 of the Evidence Code, neither their signature on the
child welfare services case plan nor their acceptance of any services
prescribed in the child welfare services case plan shall constitute
an admission of guilt or be used as evidence against the parent or
legal guardian in a court of law.  However, they shall also be
advised that the parent's or guardian's failure to cooperate, except
for good cause, in the provision of services specified in the child
welfare services case plan may be used as evidence in any hearing
held pursuant to Section 366.21 or 366.22.
   (12) The case plan shall be included in the court report and shall
be considered by the court at the initial hearing and each review
hearing.  Modifications to the case plan made during the period
between review hearings need not be approved by the court if the
casework supervisor for that case determines that the modifications
further the goals of the plan.
   (13) When the case plan has as its goal for the child a permanent
plan of adoption or placement in another permanent home, it shall
include documentation of the steps the agency is taking to find an
adoptive family or other permanent living arrangements for the child;
to place the child with an adoptive family, an appropriate and
willing relative, a legal guardian, or in another planned permanent
living arrangement; and to finalize the adoption or legal
guardianship.  At a minimum, the documentation shall include
child-specific recruitment efforts, such as the use of state,
regional, and national adoption exchanges, including electronic
exchange systems, when the child has been freed for adoption.
   (g) If the court finds, after considering the case plan, that
unsupervised sibling visitation is appropriate and has been consented
to, the court shall order that the child or the child's siblings,
and the child's prospective adoptive parents, if applicable, be
provided with information necessary to accomplish this visitation.
Nothing in this section shall be construed to require or prohibit the
social worker's facilitation, transportation, or supervision of
visits between the child and his or her siblings.
   (h) The case plan documentation on sibling placements required
under this section shall not require modification of existing case
plan forms until the Child Welfare Services Case Management System is
implemented on a statewide basis.
   (i) The department, in consultation with the County Welfare
Directors Association and other advocates, shall develop standards
and guidelines for a model relative placement search and assessment
process based on the criteria established in Section 361.3.  These
guidelines shall be incorporated
          in the training described in Section 16206.  These model
standards and guidelines shall be developed by March 1, 1999.
  SEC. 209.  Section 17012.5 of the Welfare and Institutions Code, as
added by Section 2 of Chapter 283 of the Statutes of 1997, is
repealed.
  SEC. 210.  Section 17012.5 of the Welfare and Institutions Code, as
added by Section 2 of Chapter 284 of the Statutes of 1997, is
amended to read:
   17012.5.  An individual ineligible for aid under Chapter 2
(commencing with Section 11200) of Part 3 pursuant to Section
11251.3, who is a member of an assistance unit receiving aid under
that chapter, shall also be ineligible for non-health-care benefits
under this part.
  SEC. 211.  Section 8.2 of the County Water Authority Act (Chapter
545 of the Statutes of 1943), as last amended by Chapter 812 of the
Statutes of 1998, is amended to read:
  Sec. 8.2.  (a) Any authority may, pursuant to this section, borrow
money and incur indebtedness for any of the purposes for which it is
authorized by law to spend money.  The indebtedness shall be
evidenced by short-term revenue certificates issued in the manner and
subject to the limitations set forth in this section.  Any authority
may also borrow money and incur indebtedness to pay the principal or
interest on certificates issued pursuant to this section.
   (b) Certificates issued by any authority pursuant to this section
may be negotiable or nonnegotiable, and all certificates shall be,
and shall recite upon their face that they are, payable both as to
principal and interest out of any revenues of the authority that are
made security for the certificates pursuant to an indenture or
resolution duly adopted by the board of directors.  The word
"revenues," as used in this section, refers to any revenues derived
from the sale of water and power, annexation charges (whether
collected through tax levies or otherwise), grants, available tax
revenues, or any other legally available funds.  In no event shall
any resolution or indenture preclude payment from the proceeds of
sale of other certificates issued pursuant to this section or from
amounts drawn on a bank, or other financial institution, line or
letter of credit pursuant to subdivision (e), or any other lawfully
available source of funds.
   (c) To exercise the power to borrow money pursuant to this
section, the board shall adopt a resolution, or approve an indenture,
authorizing the sale and issuance of certificates for that purpose,
which resolution or indenture shall specify all of the following:
   (1) The purpose or purposes for which the proposed certificates
are to be issued.
   (2) The maximum principal amount of the certificates that may be
outstanding at any one time.
   (3) The maximum interest cost, to be determined in the manner
specified in the resolution, to be incurred through the issuance of
the certificates.
   (4) The maximum maturities of the certificates, which shall not
exceed 270 days from the date of issue.
   (5) The obligations to certificate holders while the certificates
are outstanding.
   (d) The board may also provide, in its discretion, for any of the
following:
   (1) The times of sale and issuance of the certificates, the manner
of sale and issuance (either through public or private sale), the
amounts of the certificates, the maturities of the certificates, the
rate of interest, the rate or discount from par, and any other terms
and conditions deemed appropriate by the board or by the general
manager of the authority or any other officer designated by the
board.
   (2) The appointment of one or more banks or trust companies,
either inside or outside the state, as depository for safekeeping and
as agent for the delivery, and the payment, of the certificates.
   (3) The employment of one or more persons or firms to assist the
authority in the sale of the certificates, whether as sales agents,
as dealer managers, or in some other comparable capacity.
   (4) The refunding of the certificates without further action by
the board, unless and until the board specifically revokes that
authority to refund.
   (5) Other terms and conditions the board determines to be
appropriate.
   (e) The board may arrange for a bank, or other financial
institution, a line or letter of credit (1) for the purpose of
providing an additional source of repayment for indebtedness incurred
under this section and any interest thereon or, (2) for the purpose
of borrowing for any purpose for which short-term revenue
certificates could be issued under this section.  Amounts drawn on a
line or letter of credit may be evidenced by negotiable or
nonnegotiable promissory notes or other evidences of indebtedness.
The board is authorized to use any of the provisions of this section
in connection with the entering into of the line or letter of credit,
borrowing thereunder, or repaying of the borrowings.
  SEC. 212.  Section 2 of Chapter 21 of the Statutes of 1998 is
amended to read:
  Sec. 2.  The provisions of the memorandum of understanding prepared
pursuant to Section 3517.5 of the Government Code and entered into
by the state employer and State Bargaining Unit 6, California
Correctional Peace Officers Association, that require the expenditure
of funds, are hereby approved for the purposes of Section 3517.6 of
the Government Code.
  SEC. 213.  Section 111 of Chapter 310 of the Statutes of 1998 is
amended to read:
  Sec. 111.  (a) The sum of two million six hundred thousand dollars
($2,600,000) is hereby appropriated from the Proposition 98 Reversion
Account to a consortium of county offices of education, on a
one-time basis, for three-year grants, beginning with the 1998-99
fiscal year, for the purpose of supporting technical assistance and
focused group training to teach school district personnel how to
maximize reimbursements of federal funds for Medi-Cal services and
case management.
   (b) (1) There is hereby created, for purposes of this section, a
technical advisory committee, which shall be composed of one
representative from each of the 11 school superintendent regions,
representatives from appropriate state departments and agencies,
representatives from various school health and social services
organizations, four members representing large school districts, four
members representing medium school districts, four members
representing small school districts, and representatives from various
parent and community services organizations.
   (2) Expenses for the technical advisory committee created pursuant
to paragraph (1) shall not exceed forty-five thousand dollars
($45,000) per year of the funds appropriated by this section.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) of Section 41202 of the
Education Code, for the 1997-98 fiscal year, and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XVIII B," as defined in subdivision (e) of Section 41202
of the Education Code, for the 1997-98 fiscal year.
  SEC. 214.  Section 3 of Chapter 652 of the Statutes of 1998 is
amended to read:
  Sec. 3.  It is the intent of the Legislature in enacting Section 4
of this act that the protections under the Newborns' and Mothers'
Health Act of 1997 (Chapter 389 of the Statutes of 1997), which added
Section 1367.62 to the Health and Safety Code and Section 10123.87
to the Insurance Code, shall apply equally to all pregnant women
eligible for benefits under Medi-Cal.
  SEC. 215.  Section 1 of Chapter 722 of the Statutes of 1998 is
amended to read:
  Section 1.  (a) The Superintendent of Public Instruction shall take
steps necessary to increase the capacity of the child care system,
including, but not limited to, the following:
   (1) Encouraging contracting agencies to develop and maintain child
care spaces during nontraditional times, including at night and on
weekends.
   (2) Encouraging contracting agencies to expand the capacity for
infant care.
   (3) Encouraging contracting agencies to expand capacity,
particularly in geographic areas with high need and limited
resources.
   (b) The State Department of Education shall coordinate with the
State Department of Social Services to prepare and present an interim
report by March 31, 1999, and a final report by December 31, 1999,
to the Joint Legislative Budget Committee and Department of Finance
that defines the strategies, results, and effectiveness of recent
expenditures and allocations for building capacity for the state's
child care needs, including, but not limited to, the amounts and
kinds of capacity increased by those efforts, barriers found that
prevent increased capacity, and recommendations for overcoming those
barriers.  The report shall include recommended best practices for
future capacity building activities specific to the types of care in
shortest supply, such as infant and toddler care, schoolage care,
care in underserved areas, and nontraditional hours care.  This
report shall also include the results of current pilot studies
involving training CalWORKs recipients as licensed family child care
providers or license-exempt providers, and recommendations on the
magnitude and role of both CalWORKs recipient training and
license-exempt care in meeting future needs.
   (c) It is the intent of the Legislature that any research
activities undertaken by the State Department of Education pursuant
to this section be funded by any federal funds appropriated to the
State Department of Education for child care capacity-building
efforts pursuant to Item 6110-196-0001 of the Budget Act of 1998.
  SEC. 216.  Section 11 of Chapter 760 of the Statutes of 1998 is
amended to read:
  Sec. 11.  (a) Section 5 of this act shall become operative only if
Section 190 of the Penal Code, as amended by Section 1 of Chapter 413
of the Statutes of 1997, is rejected by the voters at the statewide
election held on June 2, 1998, in which case Section 6 of this act
shall not become operative and shall not be submitted to the voters.

   (b) Section 6 of this act shall become operative if Section 190 of
the Penal Code, as amended by Section 1 of Chapter 413 of the
Statutes of 1997, is approved by the voters at the statewide election
held on June 2, 1998, in which case Section 5 of this act shall not
become operative and shall not be submitted to the voters.
  SEC. 217.  Section 12 of Chapter 760 of the Statutes of 1998 is
amended to read:
  Sec. 12.  Sections 5 and 6 of this act affect an initiative statute
and shall become effective only when submitted to, and approved by,
the voters pursuant to subdivision (c) of Section 10 of Article II of
the California Constitution and in accordance with the provisions of
Section 11 of this act.
  SEC. 218.  Section 10 of Chapter 969 of the Statutes of 1998 is
amended to read:
  Sec. 10.  All funds appropriated and positions created for support
of the office of the Inspector General in Item 0550-001-0001 of the
Budget Act of 1998 shall be transferred upon approval of the
Department of Finance to the office of the Inspector General as
established pursuant to Section 2 of this act.
  SEC. 219.  Any section of any act enacted by the Legislature during
the 1999 calendar year that takes effect on or before January 1,
2000, and that amends, amends and renumbers, adds, repeals and adds,
or repeals a section that is amended, amended and renumbered,
repealed and added, or repealed by this act, shall prevail over this
act, whether that act is enacted prior to, or subsequent to, the
enactment of this act.  The repeal, or repeal and addition, of any
article, chapter, part, title, or division of any code by this act
shall not become operative if any section of any other act that is
enacted by the Legislature during the 1999 calendar year and takes
effect on or before January 1, 2000, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.
